UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK UNITED STATES OF AMERICA

- - - - - - - - - - - -- - - -

x

-v. ANTHONY FAZIO, SR., ANTHONY FAZIO, JR., and JOHN FAZIO, JR., Defendants

5EIl(EO
INDICTMENT 11 Cr.

11 CRIM873
"""~'"""" .
""~ ',.,

---------------

x

COUNT ONE (Racketeering Conspiracy) The Grand Jury charges: The Enterprise 1. united At all times relevant Workers to this Indictment, Union the (the in

Food and Commercial

International

\\UFCW/I) was a national many industries,

labor union that represented agriculture, health

workers

including

care, meatpacking, and retail. and

poultry

and food processing,

manufacturing,

textile,

In New York City, the UFCW has approximately is divided boroughs. 2. At alIi times relevant (\\Local 348/1) into approximately

28,000 members the five

twelve locals within

to this Indictment,

Local

348-S of the UFCW

was one of the twelve constituent Local 348 was the largest

locals of the UFCW in New York City. local, with approximately 3.

12,000 members. to this Indictment, the UFCW

At all times relevant local unions,

and its constituent

including

Local 348, were labor

organizations. numerous

On behalf of its members, or collective

Local 348 entered agreements

into

contracts,

bargaining

("CBAs"), in the

with various five boroughs 4. between

businesses

who employed

Local 348's members

of New York City. The CBAs governed many aapect.s of the relationship and union members. that signatory specified employers Among other things, the

employers

CBAs often required members to perform obligated

employers

employ only union The CBAs also

types of work.

typically members

to pay their workers who were in the CBA and to make

at an hourly rate specified

contributions funds. 5. .348's benefit

for each hour worked to the Local 348's benefit

At all times relevant funds included

to this Indictment,

Local Benefits

the UFCW Local 348 Pension

Plan, the UFCW Local 348 Health UFCW Local 348 Annuity Benefits

& Welfare Benefits Plan, and the
Plan (collectively, benefit the "Benefit plans Retirement

Funds" or "Funds"). subject

The Funds were employee

to the provisions Act

of Title I of the Employee
§

Income Security provided retirement families. required reporting

("ERISA"), 29 U.S.C. health

1001, et seq., and pension, and and their were

life insurance, benefits Pursuant

insurance,

to participating

union members

to their CBAs with Local 348, employers remittance reports to the Funds,

to submit weekly

the names of and hours worked by all employees

who were

2

Local 348 members, for those workers. 6. 348, including

and making

the required

benefits

contributions

At all times relevant its affiliated Benefit

to this Indictment,

Local

Funds, was an "enterprise," States Code, Section The

as that term is defined 1961(4),

in Title 18, United

that is, an association constituted an ongoing

in fact of entities. organization

enterprise functioned

whose members of achieving

as a continuing

unit for a common purpose This enterprise interstate

the objectives

of the enterprise. affected,

was engaged commerce.

in, and its activities

and foreign

The Defendants 7. ANTHONY FAZIO, SR. ("FAZIO SR"), the defendant, a member and

was, at all times relevant officer January of Local 348.

to this Indictment,

From approximately

1976 up to in or about of Local 348, to wit,

2010, FAZIO SR was the President in charge of the Union. in or about February

the officer 2010 until

From in or about January of

2011, FAZIO SR was a member officers.

Local 348 and an advisor to the union's 8. ANTHONY FAZIO, JR.

("FAZIO JR"), the defendant, a member and

was, at all times relevant officer of Local 348.

to this Indictment,

From in or about January

2010, up to an

including of Local

in or about February 348.

2011, FAZIO JR was the President September 2000 until in or of the

From approximately

about January

2010, FAZIO JR was the Secretary/Treasurer

3

union. August

From approximately

September

1999 until in or about Secretary. the defendant, a member, officer,

2001, FAZIO JR was Local 348's Recording 9. JOHN FAZIO, JR. ("JOHN FAZIO"),

was, at all times relevant and employee and including of Local 348.

to this Indictment,

From in or about January 2010, up to 2011, JOHN FAZIO was the From approximately September

in or about February of Local 348.

Secretary/Treasurer

2000 until in or about January President of the union.

2010, JOHN FAZIO was the Vice September 1999 until

From approximately

in or about August

2001, FAZIO JR was an employee of the Racketeering

of Local 348.

Purposes 10.

Enterprise included: and

The purposes a.

of the enterprise certain officers

Enriching

representatives ANTHONY FAZIO,

of Local 348, including SR., ANTHONY

but not limited to

FAZIO, JR., and JOHN FAZIO, JR., the soliciting and obtaining

defendants,

by unlawfully

extorting,

cash payments, business and

in violation

of federal and state labor law, from were represented by Local 348;

owners whose employees

b. in order to permit to continue

Avoiding

detection

of their illegal conduct, of the enterprise and

them to maintain

control

to enrich themselves

and others.

4

Means and Methods 11.

of the Enterprise by which the defendants conducted and and

The means and methods members

other enterprise participated included

and associates

in the conduct of the affairs

of the enterprise

the following: a. Members and associates of the enterprise to extort,

exploited solicit owners;

their positions

within the enterprise payments of money

and obtain unlawful

from business

b. exploited business payments;

Members

and associates

of the enterprise to forgive debts for cash

their positions

within

the enterprise

owners owed to the Benefit and c. Members

Funds in exchange

and associates

of the enterprise with the intent of their

laundered concealing unlawful

the unlawful

payments

they received

the origin of those payments

and promoting

activities The Racketeering 12. Conspiracy

From at least in or about at least 1995, up in or about February ANTHONY 2011, in the Southern FAZIO, SR., ANTHONY and others known with the

through District FAZIO,

and including

of New York and elsewhere,

JR., and JOHN FAZIO, JR., the defendants, being persons enterprise employed

and unknown, racketeering

by and associated

described

in Paragraphs

1 through 11

5

above, namely was engaged and foreign violate directly

Local 348 and its Benefit

Funds, which enterprise interstate to

in, and the activities commerce,
§

of which affected,

knowingly

and intentionally

conspired

18 U.S.C.

1962(c),

to wit, to conduct

and participate,

and indirectly,

in the conduct of the affairs of that of racketeering activity, as that 1961(1)

enterprise

through a pattern

term is defined and 1961(5), following

in Title 18, United of multiple law:

States Code, Sections acts indictable

consisting

under the

provisions a.

of federal

Title 18, United

States

Code, Sections

1951

and 2 (extortion) i b. Title 29, United States Code, Sections 186

and 2 (unlawful receipt of labor payments) i c. and 2 (embezzlement d. Title 18, United from pension States Code, Sections 664

and welfa,re benefit States benefit States

funds); 1954

Title 18, United concerning

Code, Sections plans) i Code, Section

and 2 (unlawful payments e. and 1957

Title 18, United

1956

(money laundering) i f. Title 18, United States Code, section 1512

(witness tampering) i

6

and multiple

acts involving

state offenses

chargeable

under the following provisions g. (acts involving 13. defendant

of state law: 155 and 20

New York State Penal Law, Sections

extortion) . It was a further part of the conspiracy that each

agreed that a conspirator activity

would commit at least two of

acts of racketeering the enterprise.

in the conduct of the affairs

(Title 18, United

States Code, Section COUNT TWO (Racketeering)

1962(d).)

The Grand Jury further 14. repeated·and Paragraphs realleged

charges: 11 of this Indictment by reference are

1 through

and incorporated

as though

fully set forth herein. 15. including From in or about at least 1995 up through 2011, in the Southern FAZIO, SR., ANTHONY and of

in or about February ANTHONY

District

New York and elsewhere,

FAZIO, JR.,

and JOHN FAZIO, JR., the defendants, unknown, being persons enterprise employed

and others known and with the 11

by and associated in Paragraphs

racketeering

described

1 through

above, namely, was engaged and foreign participate,

Local 348 and its Benefit

Funds, which enterprise interstate and

in, and the activities commerce, directly willfully

of which affected,

and knowingly

did conduct

and indirectly, 7

in the conduct

of the

affairs

of that enterprise

t~rough

a pattern

of racketeering States

activity,

as that term is defined

in Title 18, United

Code,Sections commis~ion

1961(1) and 1961(5),

to wit, through the acts:

of the following

racketeering

The Pattern 16. in Title consisted

of Racketeering activity, as defined

The pattern of racketeering States Code, Sections acts:

18, United

1961(1) and 1961(5),

of the following

Racketeering Act One: Extortion Conspiracy 17. FAZIO, ANTHONY FAZIO, SR., ANTHONY committed FAZIO, JR., and JOHN act of

JR., the defendants,

the following

racketeering, Act One:

which constitutes

the commission

of Racketeering

THE SCHEME a. and including ANTHONY FAZIO, From in or about at least 1995, up through 2011, ANTHONY FAZIO, SR.,

in or about February JR., and JOHN FAZIO,

JR., the defendants, themselves and others by were

participated extorting members hundreds

in a scheme to enrich from business

payments

owners whose employees

of Local 348. of thousands

FAZIO SR, FAZIO JR and JOHN FAZIO accepted of dollars of payments from employers who

were afraid

they would suffer physical with the FAZIOs'

or economic

harm if they

did not comply

demands.

8

THE CONSPIRACY b. and including From in or about at least 1995, up through 2011, in the Southern District FAZIO, SR., ANTHONY FAZIO,

in or about February ANTHONY

of New York and elsewhere,

JR., and JOHN FAZIO, JR., the defendants, unknown, willfully and knowingly combined,

and others known and conspired,

confederated, extortion,

and agreed together

and with each other to commit in Title 18, United States from who of

as that term is defined

Code, Section

1951(b) (2), by obtaining

money and property to wit, employers were members

and with the consent of another person, owned and operated businesses

whose employees

Local 348, which consent was induced by the wrongful actual would and threatened force, violence,

use of

and fear, and thereby and the as that term is 1951(b) (3), in 1951.

and did obstruct, of articles

delay, and affect commerce in commerce,

movement defined

and commodities

in Title 18, United States Code, Section of Title 18, United Extortion 18.

violation

States Code, Section

Racketeering Act Two: and Labor Racketeering - "Employer-I" FAZIO, SR., the defendant, committed the

ANTHONY

following

acts of racketeering, of Racketeering

any of which alone constitutes Act Two:

the commission

Extortion a. and including From at least in or about 1997, up through District of New

in or about 2009, in the Southern
9

York and elsewhere, known and unknown, to commit extortion,

ANTHONY willfully

FAZIO, SR., the defendant, and knowingly

and others

did commit and attempt of States from

extortion,

and aid and abet the commission

as that term is defined

in Title 18, united

Code, Section

1951(b) (2), by obtaining

money and property the owner of retail

and with the consent of "Employer-1," clothing

stores, whose consent was induced by the wrongful force, violence,

use of

actual and threatened obstruct,

and fear, and thereby did of articles in Title 18, of Title 18,

delay, and affe8t commerce in commerce,

and the movement

and commodities United United States States

as that term is defined 1951(b) (3), in violation 1951 and 2.

Code, Section Code, Sections b.

From at least in or about 1997, up through District of New

and including

in or about 2009, in the Southern ANTHONY

York and elsewhere, known and unknown, by extortion

FAZIO, SR., the defendant, and knowingly

and others

willfully,

did obtain property a fear that injury to some in violation

committed

by instilling

in Employer-1

FAZIO SR, and other persons, person

would cause physical

in the future and cause damage to property, State Penal Law Section c.

of New York

155.40 and 20.00.

From at least in or about 1997, up through District of New

and including

in or about 2009, in the Southern ANTHONY

York and elsewhere, known and unknown,

FAZIO, SR., the defendant, and knowingly 10

and others

willfully,

did obtain property

exceeding Employer-l

$1,000 by extortion

committed

by instilling

in

a fear that FAZIO SR, and other persons, to harm Employer-1

would perform or

an act which' was calculated financial Sections condition,

in his business

in violation

of New York State Penal Law,

155.05(e) (ix), 155.30 and 20.00. Unlawful d. Receipt of Labor Payments

From at least in or about 1997, up through and District of New York

including

in or about 2009, in the Southern ANTHONY

and elsewhere,

FAZIO, SR., the defendant,

and others 9f receive

known and unknown, Employer-1, and accept, deliveries exceeded

being representatives and knowingly,

of the employees demand,

willfully

did request,

and agree to receive and accept, payments, of money and other things of value, an employer

loans, and

whose value and a person acting were employed in

$1,000, from Employer-1, of an employer, commerce,

in the interest an industry States States

whose employees in violation

affecting

of Title 29, United

Code, Section Code, Section Extortion 19.

186(b) (1) and 2.

(d) (2), and Title 18, United

Racketeering Act Three: and Labor Racketeering - "Employer-2" FAZIO, SR. and JOHN FAZIO, JR., the the following acts of racketeering, of Racketeering any of

ANTHONY

defendants~ which

committed

alone constitutes

the commission Extortion

Act Three:

a.

From at least in or about 2003, up through
11

and including

in or about 2010, in the Eastern District ANTHONY

of New

York and elsewhere, defendants, did commit commission United

FAZIO, SR., and JOHN FAZIO, JR., the willfully and knowingly

and others known and unknown, and attempt

to commit extortion,

and aid and abet the in Title 18, money and the owner ·of

of extortion,

as that term is defined

States Code, Section

1951(b) (2), by obtaining

property

from and with the consent of "Employer-2,"

elder care facilities,

whose consent was induced by the wrongful force, violence, and fear, and and the movement

use of actual and threatened thereby did obstruct,

delay, and affect commerce in commerce,

of articles in Title of Title

and commodities

as that term is defined 1951(b) (3), in violation 1951 and 2.

18, United States Code, Section 18, United States Code, Sections b.

From at least in or about 2003, up through of New

and including

in or about 2010, in the Eastern District ANTHONY

York and elsewhere, defendants, knowingly instilling

FAZIO, SR., and JOHN FAZIO, JR., the willfully, committed and by

and others known and unknown, did obtain property in Employer-2 by extortion

a fear that FAZIO SR, JOHN FAZIO and injury to some person in violation in the

other persons, future

would cause physical to property,

and cause damage

of New York

State Penal Law, Sections c. and including

155.40 and 20.00.

From at least in or about 2003, up through of New

in or about 2010, in the Eastern District 12

York and elsewherer defendantsr knowingly committed

ANTHONY

FAZIOr

SR'r and JOHN FAZIOr JR'r the willfullYr and

and others known and unknownr did obtain property by instilling exceeding

$lrOOO

by extortion

in Employer-2 would perform

a fear that FAZIO SRr JOHN an act which was or financial

FAZIO and other personsr calculated conditionr

to harm Employer-2 in violation

in his business

of New York State Penal Lawr Sections

155 .05 (e) (ix) r

155. 30 and 20. 00 . Unlawful d. Receipt of Labor Payments up through of New

From at least in or about 2003r

and including

in or about 2010r ANTHONY

in the Eastern District

York and elsewherer defendantsr

FAZIOr SR'r and JOHN FAZIOr JR'r the being representatives and knowinglYr did and

and others known and unknownr of Employer-2r receive willfully

of the employees requestr acceptr demandr paymentsr

and acceptr

and agree to receive

loansr and deliveries $lrOOOr

of money and other things from Employer-2r an

of valuer employer whose

whose value exceeded and a person

acting in the interest in an industry

of an employerr affecting'commercer 186(b) (1) 2.

employees

were employed

in violation and

of Title 29r

United United

States Coder Section States Coder Section

(d) (2) r and Title 18r Extortion 20.

Racketeering Act Four: and Labor Racketeering - "Employer-3" FAZIOr JR'r the defendantr committed the

ANTHONY

13

following

acts of racketeering, of Racketeering

any of which alone constitutes Act Four:

the commission

Extortion a. and including From at least in or about 1995, up through of New and others

in or about 2010, in the Eastern District ANTHONY willfully FAZIO, JR., the defendant, and knowingly

York and elsewhere, known and unknown, to commit extortion,

did commit and attempt of States from

extortion,

and aid· and abet the commission

as that term is defined

in Title 18, United

Code, Section and with

1951(b) (2), by obtaining

money and property

the consent of "Employer-3,"

the owner of a restaurant use of

supply business,

whose consent was induced by the wrongful force, violence,

actual and threatened obstruct,

and fear, and thereby did of articles in Title 18, of Title 18,

delay, and affect commerce in commerce, Code, Section Code, Sections b.

and the movement

and commodities United United States States

as that term is defined 1951(b) (3), in violation 1951 and 2.

From at least in or about 1995, up through of New and others

and including

in or about 2010, in the Eastern District ANTHONY FAZIO, JR., the defendant, and knowingly

York and elsewhere, known and unknown, by extortion

willfully,

did obtain property a fear that injury to some in violation

committed

by instilling

in Employer-3

FAZIO JR, and other persons; person

would cause physical

in the future and cause damage to property,

14

of New York State Penal Law, Sections c. and including

155.40 and 20.00.

From at least in or about 1995, up through of New and others

in or about 2010, in the Eastern District ANTHONY FAZIO, JR., the defendant, and knowingly committed

York and elsewhere, known and unknown, exceeding Employer-3

willfully,

did obtain property in

$1,000 by extortion

by instilling

a fear that FAZIO JR and other persons, to harm Employer-3

would perform or

an act which was calculated financial Sections condition,

in his business

in violation

of New York State Penal Law,

155.05(e) (ix), 155.30 and 20.00. Unlawful d. Receipt of Labor Payments

From at least in or about 1995, up through of New and others of receive

and including

in or about 2010, in the Eastern District ANTHONY FAZIO, JR., the defendant,

York and elsewhere, known and unknown, Employer-3, and accept, deliveries exceeded

being representatives and knowingly,

of the employees demand,

willfully

did request,

and agree to receive

and accept, payments,

loans, and

of money and other things of value, $1,000, from Employer-3, of an employer, commerce, an employer

whose value and a person acting in

in the interest an industry States States

whose employees in violation

were employed

affecting

of Title 29, United

Code, Section Code, Section

186(b) (1) and 2.

(d) (2), and Title 18, United

15

Extortion 21. following

Racketeering Act Five: and Labor Racketeering - "Employer-4" FAZIO, SR., the defendant, committed the

ANTHONY

acts of racketeering, of Racketeering

any of which alone constitutes Act Five:

the commission

Extortion a. and including From at least in or about 1995, up through 2011, in the Eastern District and

in or about February ANTHONY willfully

of New York and elsewhere, others known attempt and unknown,

FAZIO, SR., the defendant, and knowingly

did commit and of

to commit extortion,

and aid and abet the commission in Title 18, United States

extortion,

as that term is defined

Code, Section

1951(b) (2), by obtaining

money and property the owner of retail

from stores,

and with the consent of "Employer-4," whose consent

was induced by the wrongful

use of actual and did obstruct, and

threatened delay,

force, violence,

and fear, and thereby and the movement

and affect commerce in commerce,

of articles

commodities United United

as that term is defined

in Title 18, of Title 18,

States States

Code, Section Code, Sections b.

1951(b) (3), in violation 1951 and 2.

From at least in or about 1995, up through 2011, in' the Eastern District and

and including of New York others known property

in or about February ANTHONY

and elsewhere, and unknown,

FAZIO, SR., the defendant, and knowingly did obtain a

willfully,

by extortion

committed

by instilling

in Employer-4

16

fear that FAZIO SR, and other persons, injury to some person in violation 20.00. c. and including

would cause physical to property,

in the future and cause damage

of New York State Penal Law, Sections

155.40 and

From at least in or about 1995, up through 2011, in the Eastern District and

in or about February ANTHONY

of New York and elsewhere, others known and unknown,

FAZIO, SR., the defendant, and knowingly committed did obtain

willfully,

property

exceeding

$1,000 by extortion

by instilling

in

Employer-4

a fear that FAZIO SR and other persons, to harm Employer-4

would perform or

an act which was calculated financial Sections condition,

in his business

in violation

of New York State Penal Law,

155.05(e) (ix), 155.30 and 20.00. Unlawful d. Receipt of Labor Payments

From at least in or about 1995, up through 2011, in the Eastern District and

and including

in or about February ANTHONY

of New York and elsewhere, others known and unknown, willfully

FAZIO, SR., the defendant,

being representatives and knowingly,

of the employees demand, payments,

of Employer-4, receive

did request,

and accept, and agree to receive and accept,

loans, and deliveries value acting exceeded

of money and other things of value, whose an employer and a person were of Title

$1,000, from Employer-4,

in the interest of an employer, in an industry affecting States Code, Section

whose employees

employed

commerce,

in violation

29, United

186(b) (1) and 17

(d) (2), and Title

18, United

States Code, Section

2.

Extortion 22. following

Racketeering Act Six: and Labor Racketeering - "Employer-S" FAZIO, SR., the defendant, committed the

ANTHONY

acts of racketeering, of Racketeering

any of which alone constitutes Act Six:

the commission

Extortion a. and including From at least in or about 1998, up through of New and others

in or about 2009, in the Eastern District ANTHONY willfully FAZIO, SR., the defendant, and knowingly

York and elsewhere, known and unknown, to commit extortion,

did commit and attempt of States from

extortion,

and aid and abet the commission

as that term is defined

in Title 18, United

Code, Section

19S1(b) (2), by obtaining

money and property

and with the consent of "Employer-5," supply business,

the owner of a grocery use of

whose consent was induced by the wrongful force, violence, commerce

actual and threatened obstruct,

and fear, and thereby did of articles in Title 18, of Title 18,

delay, and affect in commerce, Code, Section Code, Sections b.

and the movement

and commodities United United States States

as that term is defined 1951(b) (3), in violation 1951 and 2.

From at least in or about 1998, up through of New and others

and including

in or about 2009, in the Eastern District ANTHONY FAZIO, SR., the defendant, and knowingly

York and elsewhere, known and unknown,

willfully,

did obtain property

18

by extortion

committed

by instilling

in Employer-S

a fear that injury to some in violation

FAZIO SR, and other persons, person

would cause physical

in the future and cause damage to property,

of New York State Penal Law, Sections c. and including

155.40 and 20.00.

From at least in or about 1998, up through of New and others

in or about 2009, in the Eastern District ANTHONY FAZIO, SR., the defendant,

York and elsewhere, known and unknown, exceeding Employer-S

willfully,

and knowingly committed

did obtain property in

$1,000 by extortion

by instilling

a fear that FAZIO SR and other persons, to harm Employer-S

would perform or

an act which was calculated financial Sections condition,

in his business

in violation

of New York State Penal Law,

lSS.0S(e) (ix), 155.30 and 20.00. Unlawful d. Receipt of Labor Payments

From at least in or about 1998, up through of New and others of receive

and including

in or about 2009, in the Eastern District ANTBONY FAZIO, SR., the defendant,

York and elsewhere, known and unknown, Employer-S, and accept, deliveries exceeded

being representatives and knowingly,

of the employees demand,

willfully

did request,

and agree to receive

and accept, payments,

loans, and

of money and other things of value, whose value from Employer-S, of an employer, commerce, an employer and a person acting in

$1,000,

in the interest an industry

whose employees in violation

were employed

affecting

of Title 29, United

States Code, Section

186(b) (1) and 19

(d) (2), and Title 18, United

States

Code, Section Extortion

2.

Racketeering Act Seven: and Labor Racketeering - "Employer-6" committed the

23 .. JOHN FAZIO, JR., the defendant, following acts of racketeering, of Racketeerin$

any of which alone constitutes Act Seven:

the commission

Extortion a. and including From at least in or about 2000, up through District of New

in or about 2009, in the Southern

York and elsewhere, known and unknown, to commit extortion,

JOHN FAZIO, JR., the defendant, willfully and knowingly

and others

did commit and attempt of States from

extortion,

and aid and abet the commission

as that term is defined

in Title 18, united

Code, Section and with agency,

1951(b) (2), by obtaining

money and property

the consent of "Employer-6,"

an owner of an elder care use of actual did of articles in Title 18,' of Title 18,

whose consent was induced by the wrongful force, violence,

and threatened obstruct,

and fear, and thereby and the movement

delay, and affect commerce in commerce,

and commodities United United

as that term is defined 1951(b) (3), in violation 1951 and 2 ..

States Code, Section States Code, Sections b.

From at least in or about 2000, up through District of New

and including

in or about 2009, in the Southern

York and elsewhere, known and unknown,

JOHN FAZIO, JR., the defendant, willfully, and knowingly

and others

did obtain property

20

by extortion

committed

by instilling

in Employer-6

a fear that injury to in

JOHN FAZIO, and other persons, some person violation

would cause physical

in the future and cause damage to property,

of New York State Penal Law, Sections c.

155.40 and 20.00.

From at least in or about 2000, up through District of New

and including

in or about 2009, in the Southern

York and elsewhere, known and unknown, exceeding
I

JOHN FAZIO, JR., the defendant, willfully, and knowingly committed

and others

did obtain property in would in his

$1,000 by extortion

by instilling

Employer-6 perform business

a fear that JOHN FAZIO and other persons,

an act which was calculated or financial condition,

to harm Employer-6

in violation

of New York State

Penal Law, Sections

155.05(e) (ix), 155.30 and 20.00. Receipt of Labor Payments

Unlawful d. and including

From at least in or about 2000, up through District of New

in or about' 2009, in the Southern

York and elsewhere, known and unknown, Employer-6, and accept, deliveries exceeded

JOHN FAZIO, JR., the defendant, being representatives and knowingly,

and others of receive

of the employees demand,

willfully

did request,

and agree to receive

and accept, payments,

loans, and

of money and other things of value, $1,000, from Employer-6, of an employer, commerce, an employer

whose value and a person acting in

in the interest an industry States

whose employees in violation

were employed

affecting

of Title 29, United

Code, Section

186(b) (1) and 21

(d) (2), and Title 18, United

States

Code, Section 2. Extortion 24. Racketeering Act Eight: and Labor Racketeering - "Employer-7" committed the

JOHN FAZIO, JR., the defendant,

following

acts of racketeering, of Racketeering

any of which alone constitutes Act Eight:

the commission

Extortion a. and including From at least in or about 2006, up through District of New

in or about 2009, in the Southern

York and elsewhere, known and unknown,

JOHN FAZIO, JR., the defendant, willfully and knowingly

and others

did commit and attempt of States from

to commit extortion,

extortion,

and aid and abet the commission

as that term is defined

in Title 18, United

Code, Section and with facility,

1951(b) (2), by obtaining

money and property an owner of a care

the consent of "Employer-7,"

whose consent was induced by the wrongful force, violence,

use of actual

and threatened obstruct,

and fear, and thereby did and the movement of articles in Title 18, of Title 18,

delay, and affect commerce in commerce, Code, Section Code, Sections b.

and commodities united United States States

as that term is defined 1951(b) (3), in violation 1951 and 2.

From at least in or about 2006, up through District of New

and including

in or about 2009, in the Southern JOHN FAZIO, willfully,

York and elsewhere, known and unknown,

JR., the defendant,

and others

and knowingly

did obtain property

22

by extortion JOHN FAZIO, some person violation

committed

by instilling

in Employer-7

a fear that injury to in

and other persons,

would cause physical

in the future and cause damage to property,

of New York State Penal Law, Sections c.

155.40 and 20.00.

From at least in or about 2006, up through District of New

and including

in or about 2019, in the Southern

York and elsewhere, known and unknown, exceeding Employer-7 perform business

JOHN FAZIO, JR., the defendant, willfully, and knowingly committed

and others

did obtain property in would in his

$1,000 by extortion

by instilling

a fear that JOHN FAZIO and other persons,

an act which was calculated or financial condition,

to harm Employer-7

in violation

of New York State

Penal Law, Sections

155.05(e) (ix) , 155.30 and 20.00. Receipt of Labor Payments

Unlawful d. and including

From at least in or about 2006, up through District of New

in or about 2009, in the Southern

York and elsewhere, known and unknown, Employer-7, and accept, deliveries exceeded

JOHN FAZIO, JR., the defendant, being representatives and knowingly,

and others of

of the employees

willfully

did request,

demand, receive loans, and

and agree to receive

and accept, payments,

of money and other things of value, whose value $1,000, from Employer-7, of an employer, commerce, an employer and a person acting in

in the interest an industry States

whose employees in violation

wer~ employed

affecting

of Title 29, United

Code, Section

186(b) (1) and 23

(d) (2), and Title 18, United

States Code, Section Extortion 25. following

2.

Racketeering Act Nine: and Labor Racketeering - "Employer-8" committed the

JOHN FAZIO, JR., the defendant,

acts of racketeering, of Racketeering

any of which alone constitutes Act Nine:

the commission

Extortion a. and including From at least in or about 2005, up through of New

in or about 2008, in the Eastern District JOHN FAZIO, JR., the defendant, willfully and knowingly

York and elsewhere, known and unknown, to commit extortion,

and others

did commit and attempt of States from

extortion,

and aid and abet the commission

as that term is defined

in Title 18, United

Code, Section

1951(b) (2), by obtaining

money and property the operator

and with the consent of "Employer-S," facilities,

of elder care use of

whose consent was induced by the wrongful force, violence,

actual and threatened obstruct,

and fear, and thereby did of articles in Title lS, of Title lS,

delay, and affect in commerce, Code, Section Code, Sections b.

commerce and the movement as that term is defined 1951(b) (3), in violation 1951 and 2.

and commodities United United States States

From at least in or about 2005, up through of New

and including

in or about 200S, in the Eastern District JOHN FAZIO, JR., the defendant, willfully, and knowingly

York and elsewhere, known and unknown,

and others

did obtain property

24

by extortion

committed

by instilling

in Employer-S

a fear that injury to in

JOHN FAZIO, and other persons, some person violation

would cause physical

in the future and cause damage to property,

of New York State Penal Law, Sections c.

155.40 and 20.00.

From at least in or about 2005, up through of New

and including

in or about 200S, in the Eastern District JOHN FAZIO, JR., the defendant, willfully, and knowingly committed

York and elsewhere, known and unknown, exceeding Employer-S perform business

and others

did obtain property

$1,000 by extortion

by instilling-in would in his

a fear that JOHN FAZIO and other persons,

an act which was calculated or financial condition,

to harm Employer-S

in violation

of New York State

Penal Law, Sections

155.05(e) (ix), 155.30 and 20.00. Receipt of Labor Payments

Unlawful d. and including

From at least in or about 2005, up through of New

in or about 200S, in the Eastern District JOHN FAZIO, JR., the defendant, being representatives and knowingly,

York and elsewhere, known and unknown, Employer-S, and accept, deliveries exceeded

and others of receive

of the employees demand,

willfully

did request,

and agree to receive

and accept, payments,

loans, and

of money and other things of value, whose value $1,000, from Employer-S, of an employer, commerce, an employer and a person acting were employed in

in the interest an industry

whose employees in violation 25

affecting

of Title 29, United

States States

Code, Section Code, Section Extortion 26.

186(b) (1) and 2.

(d) (2), and Title 18, United

Racketeering Act Ten: and Labor Racketeering - "Employer-9" FAZIO, SR. ,and the following JOHN FAZIO, JR., the any of

ANTHONY

defendants, which

committed

acts of racketeering, of Racketeering

alone constitutes

the commission Extortion

Act Ten:

a. and including

From at least in or about 1999, up through of New

in or about 2009, in the Eastern District ANTHONY

York and elsewhere, defendants, did commit commission United

FAZIO, SR., and JOHN FAZIO, JR., the willfully and knowingly

and others known and unknown, and attempt

to commit extortion,

and aid and abet the in Title 18, money and the operator

of extortion,

as that term is defined

States

Code, Section

1951(b) (2), by obtaining

property of elder wrongful

from and with the consent of "Employer-9," care facilities, use of actual

whose consent was induced by the force, violence, and fear,

and threatened

and thereby movement defined violation

did obstruct,

delay, and affect commerce in commerce,

and the

of articles

and commodities

as that term is 1951(b) (3), in 1951 and 2.

in Title 18, United

States Code, Section

of Title 18, United States Code, Sections b.

From at least in or about 1999, up through of New

and including

in or about 2009, in the Eastern District ANTHONY

York and elsewhere,

FAZIO, SR., and JOHN FAZIO, JR., the 26

defendants, knowingly instilling

and others known and unknown, by extortion

willfully, committed

and by

did obtain property in Employer-9

a fear that FAZIO SR. and JOHN FAZIO, injury to some person in violation in

and other persons,

would cause physical to property,

the future and cause damage State Penal Law, Sections c. and including

of New York

155.40 and 20.00.

From at least in or about 1999, up through of New

in or about 2009, in the Eastern District ANTHONY

York and elsewhere, defendants, knowingly committed

FAZIO, SR., and JOHN FAZIO, JR., the willfully, and

and others known and unknown, exceeding

did obtain property by instilling

$1,000 by extortion

in Employer-9 would perform

a fear that FAZIO SR, JOHN an act which was or financial

FAZIO and other persons,

,calculated to harm Employer-9 condition,

in his business

in "violation of New York State Penal Law, Sections

155 .05 (e) (ix) , 155. 30 and 20. 00 . Unlawful d. and including Receipt of Labor Payments

From at least in or about 1999, up through of New

in or about 2009, in the Eastern District ANTHONY

York and elsewhere, defendants,

FAZIO, SR., and JOHN FAZIO, JR., the being representatives and knowingly, did and

and others known and unknown, of Employer-9, willfully

of the employees request,

demand, receive

and accept,

and agree to receive

accept, payments,

loans, and deliveries
27

of money and other things

of value, employer

whose value exceeded and a person acting

$1,000, from Employer-9,

an

in the interest in an industry

of an employer, affecting commerce, 186(b) (1)

whose employees in violation and

were employed

of Title 29, United

States Code, Section

(d) (2), and Title 18, United Extortion 27.

States Code, Section 2.

Racketeering Act Eleven: and Labor Racketeering - "Employer-lO" FAZIO, SR., and JOHN FAZIO, JR., the the following acts of racketeering, of Racketeering Act any of

ANTHONY

defendants, which

committed

alone constitutes

the commission

Eleven: Extortion a. and including From at least in or about 2007, up through of New

in or about 2009, in the Eastern District ANTHONY

York and elsewhere, defendants,

FAZIO, SR., and JOHN FAZIO, JR., the willfully and knowingly

and others known and unknown,

did commit and attempt commission United

to commit extortion,

and aid and abet the in Title 18, money and an owner of

of extortion,

as that term is defined

States

Code, Section

1951(b) (2), by obtaining

property

from and with the consent of "Employer-la," business,

a printing

whose consent was induced by the wrongful force, violence, and fear, and and the movement

use of actual thereby

and threatened

did obstruct,

delay, and affect in commerce,

commerce

of articles in Title

and commodities

as that term is defined 1951(b) (3), in violation

18, United

States Code, Section 28

of Title 18, United b. and including

States Code, Sections

1951 and 2.

From at least in or about 2007, up through of New

in or about 2009, in the Eastern District ANTHONY

York and elsewhere, defendants, knowingly instilling

FAZIO, SR., and JOHN FAZIO, JR., the willfully, committed and by

and others known and unknown, by extortion

did obtain property in Employer-10

a fear that FAZIO SRI JOHN FAZIO, and injury to some person in violqtion in the

other persons,

would cause physical to property,

future and cause damage

of New York

State Penal Law, Sections c. and including

155.40 and 20.00.

From at least in or about 2007, up through of New

in or about 2009, in the Eastern District ANTHONY

York and elsewhere, defendants, knowingly committed

FAZIO, SR., and JOHN FAZIO, JR., the willfully, and

and others known and unknown, exceeding

did obtain property by instilling

$1,000 by extortion a fear that FAZIO SRI JOHN an act which was or financial

in Employer-10 would perform

FAZIO and other persons, calculated condition,

to harm Employer-10 in violation

in his business

of New York State Penal Law, Sections

155 .05 (e) (ix), 155 .30 and 20 .00 . Unlawful d. and including Receipt of Labor Payments

From at least in or about 2002, up through of New

in or about 2009, in the Eastern District ANTHONY

York and elsewhere,

FAZIO, SR., and JOHN FAZIO, JR., the 29

defendants,

and others known and unknown, of Employer-10, receive willfully

being representatives and knowingly, did and

of the employees request, accept, demand, payments,

and accept,

and agree to receive

loans, and deliveries

of money and other things an

of value, employer

whose value exceeded and a person acting were employed

$1,000, from Employer-10,

in the interest in an industry

of an employer, affecting commerce, 186(b) (1) 2. Plan in

whose employees in violation and

of Title 29, United

States Code, Section States Code, Section of an Employee Benefit

(d) (2), and Title 18, United Influencing e. the Operations

From in or about 2007 up to and including

or about 2009, in the Eastern District JOHN FAZIO, JR., the defendant, trustee, plan, custodian,

of New York and elsewhere, officer,

being an administrator,

and agent of an employee

welfare benefit

and an officer,

agent and employee of an employee were covered by such plan, to wit, the Plan, solicited and received and

organization UFCW Local agreed

whose members 348 Health

& Benefits

to solicit and receive

fees, kickbacks,

gifts, money and

things of value because with respect to questions

of and with the intent to be influenced decisions, and other duties relating

to his actions, and matters

concerning

such plan, that is, JOHN and things of value rate of from

FAZIO accepted Employer-10, contribution

annual cash payments

in return on behalf

for a lower contractual of his employees

to such plan for health

30

care benefits, Sections

in violation

of Title 18, United

states "Code,

1954 and 2. Extortion 28. Racketeering Act Twelve: and Labor Racketeering - "Employer-ll" FAZIO, SR., the defendant, committed the

ANTHONY

following

acts of racketeering, of Racketeering

any of which alone constitutes Act Twelve:

the commission

Extortion a. and including From at least in or about 1999, up through District of New

in or about 2010, in the Southern ANTHONY willfully

York and elsewhere, known and unknown, to commit extortion,

FAZIO, SR., the defendant, and knowingly

and others

did commit and attempt of States from

extortion,

and aid and abet the commission

as that term is defined

in Title 18, United

Code, Section and with restaurant wrongful

1951(b) (2), by obtaining

money and property the operator of a

the consent of "Employer-11," supply business,

whose consent was induced by the force, violence, and fear,

use of actual and threatened did obstruct,

and thereby movement defined

delay, and affect commexce in commerce,

and the

of articles

and commodities

as that term is 1951(b) (3), in 1951 and 2.

in Title 18, United

States Code, Section

violation

of Title 18, United b.

States Code, Sections

From at least in or about 1999, up through District of New

and including

in or about 2010, in the Southern ANTHONY

York and elsewhere,

FAZIO, SR., the defendant, 31

and others

known and unknown, by extortion

willfully,

and knowingly

did obtain property a fear that

committed

by instilling

in Employer-ll

FAZIO SR, and other persons, person

would cause physical

injury to some in violation

in the future and cause damage to property,

of New York State Penal Law, Sections c. and including

155.40 and 20.00.

From at least in or about 1999, up through District of New

in or about 2010, in the Southern ANTHONY

York and elsewhere, known and unknown, exceeding Employer-11

FAZIO, SR., the defendant, and knowingly committed

and others

willfully,

did obtain property in

$1,000 by extortion

by instilling

a fear that FAZIO SR and other persons, to harm Employer-ll

would perform

an act which was calculated or financial Sections condition,

in his business

in violation

of New York State Penal Law,'

155.05(e) (ix), 155.30 and 20.00. Unlawful d. Receipt of Labor Payments

From at least in or about 1999, up through District of New

and including

in or about 2010, in the Southern ANTHONY

York and elsewhere, known and unknown, Employer-ll, receive

FAZIO, SR., the defendant,

and others of

being representatives and knowingly,

of the employees demand,

willfully

did request,

and accept, and agree to receive and accept, payments, of money and other things of value, whose from Employer-ll, of an employer, 32 an employer and a person were

loans, and deliveries value acting exceeded $1,000,

in the interest

whose employees

employed

in an industry

affecting

commerce,

in violation

of Title

29, Uni.ted States Code, Section 18, United States Code, Section

186(b) (1) and 2.

(d) (2), and Title

Extortion 29. following

Racketeering Act Thirteen: and Labor Racketeering - "Employer-12" committed the

JOHN FAZIO, JR., the defendant,

acts of racketeering, of Racketeering

any of which alone constitutes Act Thirteen:

the commission

Extortion a. and including From at least in or about 1999, up through of New

in or about 2009, in the Eastern District JOHN FAZIO, JR., the defendant, willfully and knowingly

York and elsewhere, known and unknown, to commit extortion,

and others

did commit and attempt of States from

extortion,

and aid and abet the commission

as that term is defined

in Title 18, United

Code, Section and with

1951(b) (2), by obtaining

money and property the owner of a

the consent of "Employer-12," company,

manufacturing use of actual thereby

whose consent was induced by the wrongful force, violence, and fear, and and the movement

and threatened

did obstruct,

delay, and affect commerce in commerce,

of articles in Title of Title

and commodities

as that term is defined

18, United States 18, United States b.

Code, Section 1951(b) (3), in violation Code, Sections 1951 and 2.

From at least in or about 1999, up through of New

and including

in or about 2009, in the Eastern District 33

York and elsewhere, known and unknown, by extortion

JOHN FAZIO, JR., the defendant, willfully, and knowingly

and others

did obtain property a fear that injury to in

committed

by instilling

in Employer-12

JOHN FAZIO, and other persons, some person violation

would cause physical

in the future and cause damage to property,

of New York State Penal Law, Sections c.

155.40 and 20.00.

From at least in or about 1999, up through District of New

and including

in or about 2009, in the Eastern

York and elsewhere, known and unknown, exceeding Employer-12
I

JOHN FAZIO, JR., the defendant, willfully, and knowingly committed

and others

did obtain property in would in his

$1,000 by extortion

by instilling

a fear that JOHN FAZIO and other persons,

perform business

an act which was calculated or financial condition,

to harm Employer-12

in violation

of New York State

Penal Law, Sections

155.05(e) (ix), 155.30 and 20.00. Receipt of Labor Payments

Unlawful d. and including

From at least in or about 1999, up through District of New

in or about 2009, in the Eastern

York and elsewhere, known and unknown, Employer-12, receive

JOHN FAZIO, JR., the defendant, being representatives and knowingly,

and others of

of the employees demand,

willfully

did request,

and accept,

and agree to receive and accept, payments, of money and other things of value, whose from Employer-12, 34 an employer and a person

loans, and deliveries value exceeded $1,000,

acting

in the interest in an industry States States

of an employer, affecting

whose employees

were of Title

employed

commerce,

in violation

29, .United 18, United

Code, Section Code, Section

186(b) (1) and 2.

(d) (2), and Title

Embezzlement e. District

of Union Benefit

Fund

In or about March 2007, in the Eastern JOHN FAZIO, JR., the willfully and knowingly abstract

of New York and elsewhere,

defendant,

and others known and unknown,

did embezzle and convert property, Benefits

and steal, and did unlawfully

and willfully

to their own use, and to the use of others credits,

and other assets of the UFCW Local 348 Health and Plan, to wit, JOHN FAZIO, and others, the terms of its collective aided Employer-12 agreement Plan's of with

to violate

bargaining

Local 348 and defeat right to collect Title 18, United Influencing f. District

the Local 348 Health and Benefit

contributions

due the Plan, in violation 664 and 2. Benefit

States Code, Sections the Operations

of an Employee

Plan

In or about March 2007, in the Eastern JOHN FAZIO, officer, JR., the custodian

of New York and elsewhere, being an administrator, welfare

defendant,

trustee,

and agent of an employee agent and employee covered Benefits

benefit plan, organization

and an officer, whose members were

of an employee

by such plan, to wit, the UFCW Local 348 Health & Plan, solicited and received and agreed to solicit and

35

receive

a fee, kickback,

gift, money and thing of value because with respect to his and a

of and with the intent to be influenced actions, matters decisions, concerning

and other duties relating

to questions

such plan, that is, JOHN FAZIO accepted a business

check for $7,000 from Employer-12, past-due Health contributions

owner who owed to the Local 348 of the of Title

on behalf of employees

& Benefit

Plan, in return for cancellation

Employer-12's 18, United

contractual

debt to such plan in violation 1954 and 2.

States Code, sections

Racketeering Act Fourteen: Money Laundering Conspiracy 30. defendants, constitutes ANTHONY FAZIO, SR., and JOHN FAZIO, JR., the the following act of racketeering, Act Fourteen: which

committed

the commission

of Racketeering THE SCHEME

a. including

From in or about 2002, up through and FAZIO, SR., and JOHN FAZIO,

in or about 2009, ANTHONY participated

JR., the defendants, proceeds

in a scheme to launder the

of their criminal

activities. THE CONSPIRACY

b. including

From at least in or about 2002, up to and District of New York

in or about 2009, in the Southern ANTHONY

and elsewhere, defendants, did combine,

FAZIO, SR., and JOHN FAZIO, JR., the willfully and knowingly and with

and others known and unknown, conspire, confederate 36

and agree together

each other to violate

Title 18, United

States Code, Sections

1956 (a) (1) (A) (i), 1956 (a) (1) (B) (i), and 1957 (a). OBJECTS c. that ANTHONY OF THE CONSPIRACY

It was a part and an object of the conspiracy and

FAZIO, SR., and JOHN FAZIO, JR., the defendants, in an offense involving

others known and unknown, interstate involved proceeds knowingly financial specified unlawful pension

and affecting

and foreign commerce, financial

knowing- that the property represented willfully to conduct the and such of

in certain

transactions activity,

of some form of unlawful would and did conduct transactions unlawful payments

and attempt

which in fact involved

the proceeds

activity,

to wit, the proceeds

of extortion, from

to labor organizations, funds, and unlawful the carrying

embezzlement welfare

and welfare

fund payments, unlawful

with the intent to promote activity, in violation

on of specified

of Title 18, United

States Code, Section

1956 (a) (1) (A) (i) . d. conspiracy defendants, It was further a part and an object of the FAZIO, SR., and JOHN FAZIO, JR., the in an offense knowing involving that the

that ANTHONY

and others known and unknownr interstate

and affecting property

and foreign commercer financial

involved

in certain

transactions activity,

represented and

the proceeds knowingly

of some form of unlawful

willfully

would and did conduct

and attempt

to conduct

such

37

financial specified unlawful pension knowing

transactions unlawful payments

which in fact involved

the proceeds

of

activity,

to wit, the proceeds

of extortion, from

to labor organizations, funds, and unlawful

embezzlement welfare

and welfare

fund payments,

that the transactions and disguise
,

were designed

in whole and in part the source, the unlawful

to conceal ownership activity,

the nature,

the location,

and the control of the proceeds in violation

of specified

of Title 18, United States Code, Section

1956 (a) (1) (B) (i) .

e. conspiracy defendants, States, foreign

It was a further part and an object of the FAZIO, SR., and JOHN FAZIO, JR., the within the United and

that ANTHONY

and others known and unknown, involving

in an offense commerce,

and affecting

interstate

willfully

and knowingly

would and did engage in criminally that was derived of

and attempt

to ,engage in monetary

transactions

derived property from specified extortion,

of a value greater activity,

than $10,000

unlawful

to wit, the proceeds

unlawful

payments

to labor organizations, welfare

embezzlement fund

from pe~sion payments,
1957 (a) .

and welfare

funds, and unlawful

in violation

of Title 18, United

States Code, Section

Racketeering Act Fifteen: Witness Tampering 31. following ANTHONY FAZIO, SR., the defendant, which constitutes
38

committed

the

act of racketeering,

the commission

of Racketeering

Act Fifteen: a. In or about 2011, in the Southern ANTHONY District and of

New York and elsewhere,

FAZIO, SR., the defendant, and knowingly persuade did use

others known and unknown, intimidation, threaten,

willfully

and corruptly

another person, of a

with intent to influence, person

delay, and prevent

the testimony

in an official proceeding, to withhold

and with intent to cause and from an official States Code,

induce a person proceeding, Sections

testimony

in violation

of Title 18, United

1512 (b) (1), 1512 (b) (2) (A), and 2. (Title 18, United States Code, Section 1962(c».

COUNT THREE (Extortion Conspiracy) The Grand Jury further 32. repeated Paragraphs charges: 11 of this Indictment by reference are

1 through

and realleged

and incorporated

as though

fully set forth herein. THE SCHEME 33. including From in or about at least 1995, up through and 2011, ANTHONY FAZIO, SR., ANTHONY participated cash of in

in or about February

FAZIO, JR., and JOHN FAZIO, JR., the defendants, a scheme payments to enrich themselves from business

and others by extorting

owners whose employees

were members

Local 348. of thousands

FAZIO SR, FAZIO JR and JOHN FAZIO accepted of dollars of cash payments 39 from employers

hundreds who were

afraid

they would

suffer physical

or economic demands.

harm if they did

not comply with the FAZIOs' payment

THE CONSPIRACY 34. including From in or about at least 1995, up through and 2011, in the Southern FAZIO, SR., ANTHONY District of

in or about February ANTHONY

New York and elsewhere,

FAZIO, JR.,

and JOHN FAZIO, JR., the defendants, unknown, willfully and knowingly

and others known and conspired,

combined,

confederated, extortion,

and agreed together

and with each other to commit in Title 18, United States from who of

as that term is defined

Code, Section

1951(b) (2), by obtaining

money and property to wit, employers were members

and with the consent of another person, owned and operateo businesses

whose employees

Local 348, which consent was induced by the wrongful actual and threatened force, violence,

use of

and fear, and thereby and the as that term is 1951(b) (3). 1951.)

would and did obstruct, movement defined of articles

delay, and affect commerce in commerce,

and commodities

in Title 18, United States (Title 18, United

Code, Section

States Code, Section

COUNT FOUR (Unlawful Receipt of Labor Payments The Grand Jury further charges: 35. repeated Paragraphs 1 through

Conspiracy)

11 of this Indictment by reference

are

and realleged

and incorporated

as though

fully set forth herein. 40

THE SCHEME 36. including From in or about at least 1995, up through and 2011, ANTHONY FAZIO, SR., ANTHONY participated bribes in

in or about February

FAZIO, JR., and JOHN FAZIO, JR., the defendants, a scheme to enrich themselves

and others by soliciting

from business

owners whose .employees were members

of Local 348. of thousands

FAZIO SR, FAZIO JR and JOHN FAZIO accepted of dollars of cash payments from employers

hundreds

who were afraid they

would suffer physical

or economic harm if they did not comply demands. THE CONSPIRACY

with the FAZIOs' bribery

37. including

From at least in or about at least 1995, up to and 2011, in the Southern FAZIO, SR., ANTHONY District of

in or about February ANTHONY

New York and elsewhere,

FAZIO, JR.,

and JOHN FAZIO, JR., the defendants, unknown, willfully and knowingly

and others known and conspire,

did combine,

confederate, offense united

and agree together the united

and with each other to commit an Title 29,

against States

States, to wit, to violate 186.

Code, Section

OBJECT OF THE CONSPIRACY 38. ANTHONY FAZIO, It was a part and an object SR., ANTHONY of the conspiracy that

FAZIO, JR., and JOHN FAZIO, JR., the being representatives and knowingly, and agree to of money and

defendants,

and others known and unknown, of various employers,

of the employees

willfully

would and did request, receive

demand, receive

and accept,

and accept, payments,

loans, and deliveries 41

other things of value, whose value exceeded employer whose and a person acting in the interest in an industry

$1,000, from an of an employer, affecting commerce.

employees

were employed

OVERT ACTS IN FURTHERANCE 39. the illegal In furtherance

OF THE CONSPIRACY and to effect FAZIO,

of the conspiracy

object

thereof, ANTHONY

FAZIO, SR., ANTHONY

JR., and JOHN FAZIO, JR., the defendants, unknown, Southern committed District a. defendant, organized payments the following

and others known and in the

overt acts, among others,

of New York and elsewhere: In or about 1997, ANTHONY FAZIO, SR., the were

met with the owner of a business by Local 348 and demanded from the business b. owner. $25,000

whose employees in annual cash

In or around 2010, ANTHONY

FAZIO, JR., the were

defendant, organized

called the owner of a business

whose employees

by Local 348 to arrange a meeting to FAZIO JR.

at which the business

owner would make a cash payment c. JR., the defendant, a business received owner. (Title 18, United

On or about December

28, 2009, JOHN FAZIO,

met in the Bronx, New York with the owner of were organized States currency by Local 348 and from the business

whose employees

$5,000 in United

States Code, Section

371.)

COUNT FIVE (Money Laundering Conspiracy) The Grand Jury further charges: 42

40. repeated

Paragraphs

1 through

11 of this Indictment by reference

are

and realleged

and incorporated

as though

fully set forth herein. THE SCHEME 41. From .in or about 2002, up through and including FAZIO, SR., and JOHN FAZIO, JR., the in a scheme to launder the proceeds of in

or about 2008, ANTHONY defendants, participated

their criminal

activities. THE CONSPIRACY

42. including

From at least in or about 2002, up to and District of New York

in or about 2008, in the Southern ANTHONY

and elsewhere, defendants, did combine,

FAZIO, SR., and JOHN FAZIO, JR., the willfully and knowingly and with

and others known and unknown, conspire, confederate

and agree together

each other to violate

Title 18, United

States Code, Sections

1956 (a) (1) (A) (i), 1956 (a) (1) (B) (i), and 1957 (a). OBJECTS 43. ANTHONY others OF THE CONSPIRACY that

It was a part and an object of the conspiracy and

FAZIO, SR., and JOHN FAZIO, JR., the defendants, known and unknown, in an offense knowing involving

and affecting

( interstate involved proceeds knowingly financial

and foreign commerce, financial

that the property represented willfully to conduct the and such of

in certain

transactions activity,

of some form of unlawful would and did conduct transactions

and attempt

which in fact involved

the proceeds

43

specified unlawful pension

unlawful payments

activity,

to wit, the proceeds

of extortion, from

to labor organizations, funds, and unlawful the carrying

embezzlement welfare

and welfare

fund payments, unlawful

with the intent to promote activity, in violation

on of specified

of Title 18, United

States Code, Section

1956 (a) (1) (A) (i) .

44. conspiracy defendants,

It was further a part and an object of the FAZIO, SR., and JOHN FAZIO, JR., the in an offense knowing involving that the

that ANTHONY

and others known and unknown, interstate and foreign

and affecting property

commerce,

involved

in certain

financial

transactions activity,

represented and

the proceeds knowingly financial specified unlawful pension knowing

of some form of unlawful

willfully

would and did conduct transactions unlawful payments

and attempt

to conduct

such of

which in fact involved

the proceeds

activity,

to wit, the proceeds

of extortion, from

to labor organizations, funds, and unlawful

embezzlement welfare

and welfare

fund payments,

that the transactions and disguise

were designed

in whole and in part the source, the

to conceal ownership activity,
1956(a)

the nature,

the location,

and the control of the proceeds in violation of Title 18, United

of specified

unlawful

States Code, Section

(1) (B) (i).

45. conspiracy defendants,

It was a further part and an object of the FAZIO,· SR., and JOHN FAZIO, JR., the within the United

that ANTHONY

and others known and unknown,

44

States, foreign

in an offense commerce,

involving

and affecting

interstate

and

willfully

and knowingly

would and did engage in criminally

and attempt derived

to engage

in monetary

transactions

property

of a value greater activity,

than $10,000 that was derived of

from specified extortion,

unlawful

to wit, the proceeds

unlawful

payments

to labor organizations, welfare

embezzlement fund

from pension payments, 1957 (a) .

and welfare

funds, and unlawful

in violation

of Title 18, United

States Code, Section

(Title 18, United

States Code, Section

1956(h).)

COUNT SIX (Witness Tampering) The Grand Jury further charges: 46. New York others In or about 2011~ in the Southern ANTHONY District of and

and elsewhere,

FAZIO, SR., the defendant, and knowingly persuade did use

known

and unknown, threaten,

willfully

intimidation, with intent

and corruptly

another person, of a

to influence,

delay, and prevent

the testimony

person

in an official

proceeding,

and with intent to cause and from an official

induce a person to withhold proceeding. (Title 18, United Forfeiture 47. this Indictment

testimony

States Code, Sections 1512 (b) (2), and 2.)

1512(b) (1),

Allegation

as to Counts One and Two contained in Counts One and Two of and incorporated

The allegations

are hereby repeated,

realleged,

45

by reference purpose

herein as though forfeiture

fully set forth at length for the pursuant to the provisions of

of alleging

Title 18, United States Code,

States Code, Section

1963 and Title 28, United to Rule 32.2, Fed. R. ANTHONY FAZIO,

Section 2461(c).

Pursuant

Crim. P., notice SR., ANTHONY States will with Title

is hereby given to the defendants

FAZIO, JR., and JOHN FAZIO, JR., that the United seek forfeiture as part of any sentence
\

in accordance

18, United States Code, Section conviction

1963 in the event of

any defendant's this Indictment. 48.

under Count One and/or Count Two of

The defendants

ANTHONY

FAZIO, SR., ANTHONY

FAZIO,

JR., and JOHN FAZIO, JR.: a. violation interest to Title have acquired and maintained interests in

of Title 18, United

States Code, Section

1962, which

are subject to forfeiture

to the United States pursuant 1963(a) (1) i of, claims

18, United States Code, Section b. have an interest and contractual

in, security

against,

and property

rights which afford a named and described operated, controlled, of

source of influence herein which conducted,

over the enterprise established,

the defendants

and participated

in the conduct of, in violation 1962, which interests, to forfeiture

Title 18, United securities, United 1963

States Code, Section

claims, and rights are subject to Title 18, United

to the

States pursuant

States Code, Section

(a) (2) i

46

c. proceeds obtained,

have property directly,

constituting

and derived

from

and indirectly,

from the aforesaid

racketeering Code, Section the United Section

activity,

in violation

of Title 18, United States is subject to forfeiture States Code, to

1962, which property

States pursuant (a) (3) .

to Title 18, united

1963
49.

The interests

of the defendants

ANTHONY

FAZIO,

SR., ANTHONY forfeiture States

FAZIO, JR., and JOHN FAZIO, JR. subject to States pursuant to Title 18, United (a) (3), iriclude

to the United

Code, Sections

1963

(a) (1), (a) (2), and

but are not limited, constituting indirectly, United

at least $1,000,000 from proceeds activity, 1962. Assets

and any and all property obtained, directly and

and derived

from racketeering

in violation

of Title 18,

States Code, Section

Substitute
50.

Provision forfeitable of the defendants: of due

If any of the above-described of any act or omission

property,

as a result (1)

cannot be located upon the exercise diligence;

(2)

has been transferred with, a third person;

or sold to, or deposited

(3)

has been placed beyond the Court;

the jurisdiction

of

(4)

has been substantially or

diminished

in value;

47

(5)

has been commingled cannot be subdivided

with other property without difficulty;

which

it is the intention United

of the United

States, pursuant

to Title 18, of any

States Code, Section

1963(m),

to seek forfeiture

other property forfeitable

of the defendants

up to the value of the above

property. The above-named defendants, and each of them, are obligations as

51. jointly alleged

and severally above.

liable for the forfeiture

(Title 18, United Forfeiture 52.

States Code, Sections Allegation

1962 and 1963.)

as to Count Three the offense, 1951, alleged in violation in Count FAZIO, JR.,

As a result of committing States Code, Section ANTHONY

of Title 18, United

Three of this Indictment,

FAZIO, SR., ANTHONY shall forfeit

and JOHN FAZIO, JR., the defendants, States, pursuant to 18 U.S.C.
§

to the United
§

981(a) (1) (C) and 28 U.S.C. that constitutes

2461,

all property, from proceeds which

real and personal, traceable

or is derived for

to the commission

of the offense,

the defendants

are jointly

and severally

liable, including representing

but not limited

to a sum in United obtained

States currency

the amount of proceeds

as a result of the offense. Assets Provision forfeitable property,

Substitute 53.

If any of the above-described

as a result of any act or omission (1)

of the defendants: of due

cannot be located upon the exercise

48

diligence; (2) has been transferred with, a third person; (3) has been placed Court; (4) (5) has been substantially has been commingled cannot be subdivided it is the intent of the United
§

or sold to, or deposited

beyond

the jurisdiction

of the

diminished

in value;

or

with other property without difficulty; to 21 U.S.C. of said

which

States, pursuant

853(p),

to seek forfeiture

of any other property

defendants

up to the value of the forfeitable

property.

(Title 18, United States Code, Section 981, Title 28, United States Code, Section 2461, Title 18, United States Code, Section 1951, and Title 21, United States Code, Section 853.) Forfeiture 54. of Title States Allegation as to Count Four the offense, in violation

As a result of committing

18., United States Code, Section 371 and Title 29, United 186, alleged in Count Four of this FAZIO, JR., and JOHN States,

Code, Section ANTHONY

Indictment,

FAZIO, SR., ANTHONY

FAZIO, JR., the defendants, pursuant property, proceeds to 18 U.S.C.
§

shall forfeit to the United
§

981(a) (1) (C) and 28 U.S.C. that constitutes oris

246~, all derived from

real and personal, traceable

to the commission

of the offense, liable,

for which the but not the amount

defendants limited

are jointly and severally States

including

to a sum in United obtained

currency

representing

of proceeds

as a result

of the offense. 49

Substitute 55. as a result

Assets

Provision forfeitable property,

If any of the above-described

of any act or omission (1)

of the defendants: of due

cannot be located upon the exercise diligence; .

(2)

has been transferred with, a third person;

or sold to, or deposited

(3)

has been placed Court;

beyond the jurisdiction

of the

(4) (5)

has been substantially has been commingled cannot be subdivided

diminished

in value;

or

with other property without difficulty; to 21 U.S.C. of said

which

it is the intent of the United
§

States, pursuant

853(p),

to seek forfeiture

of any other property

defendants

up to the value of the forfeitable

property.

(Title 18, United States Code, Section 981, Title 28, United States Code, Section 2461, Title 18, United States Code, Section 371, Title 29, United States Code, Section 186, and Title 21, United States Code, Section 853.) Forfeiture 56. offense, Allegation as to Count Five the money laundering

As the result of committing of 18 U.S.C.
§

in violation

1956, alleged

in Count Five

of this Indictment, defendants, U.S.C. offense
§

ANTHONY

FAZIO, SR. and JOHN FAZIO, JR., the States pursuant involved to 18 in the

shall forfeit

to the United

982, all property, and all property

real and personal,

traceable

to such property,

for which the

50

defendants

are jointly

and severally Assets

liable. Provision forfeitable property,

Substitute 57.

If any of the above-described

as a result of any act or omission

of the defendants: of due

(1) cannot be located upon the exercise diligence; (2) has been transferred a third person; (3) has been placed beyond Court;
(4)

or sold to, or deposited

with,

the jurisdiction

of the

has been substantially

diminished

in value;

or

(5) has been commingled be subdivided without

with other property

which cannot

difficulty; States, pursuant to 18 U.S.C. of said property.
§

it is the intent of the United 982(b), to seek forfeiture

of any other property

defendants

up to the value of the above forfeitable

(Title 18, United States Code, Section 982, and Title 18, United States Code, Section 1956.)

PREET BHARARA United States Attorney

51

Form No. USA-33s-274

(Ed. 9-25-58)

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK UNITED STATES OF AMERICA

- v. ANTHONY FAZIO, SR., ANTHONY FAZIO, JR., and JOHN FAZIO, JR. Defendants. SEALED 11 Cr. (Title 18, United States Code, Sections 1951, 371, 1956 & 1512.) PREET BHARARA· United States Attorney. A TRUE BILL 1962(d), 1962, INDICTMENT

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