76 Congi - Direct - Coombe 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 M A R K C O N G I

,

having been duly sworn by the Clerk of the Court, was examined and testified as follows: DIRECT EXAMINATION BY MS. COOMBE: Q Could you please state your name and spell your

last name for the court reporter? A Q Sure. Mark Congi, C-O-N-G-I.

Mr. Congi, have you pled guilty to an offense

against the United States? A Q A Q A Q A Q A Q Yes, I have. What did you plead guilty to? Section 18 -- 1962(c), I think, I'm not positive. Do you know what that is in plain English? Racketeering. Are you currently serving a prison sentence? Yes, I am. Where are you serving the prison sentence? At federal prison in Lisbon, Ohio. Did you enter into a plea agreement with the

United States? A Q Yes, I did. Did you enter into a cooperation agreement with

the United States? A Yes, I did.

THERESA J. CASAL, RPR, CRR UNITED STATES DISTRICT COURT - NDNY

77 Congi - Direct - Coombe 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 MS. COOMBE: Your Honor, I've marked for May I approach, your Honor?

identification purposes GJ-15. THE COURT: BY MS. COOMBE: Q GJ-15. A Q A Q Please.

Mr. Congi, I'm handing you Government's Exhibit Do you recognize that? Yes, I do. What is it? This is my plea agreement. Have you had an opportunity to review that

agreement? A Q Yes, I have. Do you have any understanding of what that

agreement requires from you during your testimony today? A Q A Q manner? A Q To be truthful. Who is the Assistant United States Attorney who To cooperate fully with the Government. Does it require anything else from you? Not at all. Does it require you to testify in a particular

handled the case that led to your plea? A Q A William Hochul. Where does Mr. Hochul work, in what city? Buffalo, New York.

THERESA J. CASAL, RPR, CRR UNITED STATES DISTRICT COURT - NDNY

78 Congi - Direct - Coombe 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Q Honor? THE COURT: Please. Q What is your understanding of what benefit, if

any, you will receive from the Government for your testimony today? A That -- I understand I won't receive -- I haven't

been promised anything, and that Mr. Hochul will be notified of my cooperation and he will take into consideration if any -- if any time -- if I get any -- wrong words here. If

there would be any relief in my sentence, he would consider it, depending on my cooperation. Q A That would be up to Mr. Hochul? Solely up to Mr. Hochul. MS. COOMBE: May I retrieve that exhibit, your

Are you a member of the Laborers International

Union of America Local 91? A Q A Q A I was before I was arrested. When did you join the union? In 1982. Did you ever have any leadership position? Yes. I rows to -- ended up being president of the

union and assistant business agent. Q agent? A Assistant business agent. Which is higher, president or assistant business

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79 Congi - Direct - Coombe 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Q A Q A believe. Q What were your duties and responsibilities as the When did you become the assistant business agent? In November of '95, I believe. How long were you the assistant business agent? Until the day of my arrest on May 17, 2002, I

assistant business agent? A I answered to Michael Quarcini, who was the Whatever he asked me to do, I did.

business agent. Q A

Is Mr. Quarcini still the business agent? No. He -- after we were arrested, one year after

we were arrested, he passed away. Q Bruno? A Q Yes, I am. Do you have any understanding of how well Are you aware of whether Mr. Quarcini knew Senator

Mr. Quarcini knew Senator Bruno? A Q He knew him very well. Do you have any understanding of how Mr. Quarcini

got in touch with Senator Bruno? A Well, Mr. Quarcini had been, through the years,

starting -- he started in office in 1966, I think, or '67, he was always close to political figures that would help Local 91, starting with Nelson Rockefeller and right up through Senator Earl Bridges at the time, John Daley, and he

THERESA J. CASAL, RPR, CRR UNITED STATES DISTRICT COURT - NDNY

80 Congi - Direct - Coombe 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 eventually met Mr. Bruno, I believe through John Daley, who was Niagara County Legislator at the time. Q You a aware of whether Mr. Quarcini ever spoke to

Mr. Bruno about any legislative issues? A Q A Often. How are you aware of that? Well, Mr. Quarcini would tell me, after a meeting

with him, I would meet with him and other members of the union and discuss his conversations with Mr. Bruno and we would discuss, you know, Mr. Bruno would be able to do for Local 91, as far as getting work and things like that, work for the area. Q Have you ever attended a meeting with Mr. Quarcini

to talk to Senator Bruno about legislative issues? A Q A Yes, I did. Where was that meeting held? In a conference room next to Mr. Bruno's office in

The Capital Building, I believe. Q A Who was at the meeting? Mr. Bruno, George Maziarz, Mr. Quarcini,

Mr. Dellaccio, Nick Spano and myself. Q A Q Could you spell Dellaccio for us? D-E-L-L-A-C-C-I-O. Now, you mentioned a Mr. Maziarz, did he have any

special role?

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81 Congi - Direct - Coombe 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 A Well, Mr. Maziarz was a legislator in Niagara

County and he was kind of like our go-between for Mr. Bruno at times. He was -- we were very close to him, Butch was

very close to him and depended on him to set us out in certain situations where legislation was. Q A Q A Was Mr. Maziarz in a state position? Yes. Do you know what his position was? Not offhand. He was -- no, I would be guessing.

I think it had something to do with the labor department, but I'm not sure on that. Q What issue was discussed during the meeting that

you attended with Senator Bruno and Mr. Quarcini? A Well, Mr. Quarcini was always looking for money He wanted to get money for -- from the DOT

for the area.

for road jobs and other assistance, to bring money into Niagara County because it was so bad. He talked about that.

And then he talked to Mr. Bruno about the possibility of bringing in a tribe from Oklahoma to set up a casino in Niagara Falls. Q Why did Mr. Quarcini want this tribe from Oklahoma

to be able to build a casino in Niagara Falls? MR. LOWELL: THE COURT: Objection. I'll sustain it as to foundation.

What's the basis of the witness' knowledge?

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82 Congi - Direct - Coombe 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 A BY MS. COOMBE: Q Did you ever have any conversations or

interactions with Mr. Quarcini during which he indicated to you why he was interested in supporting the efforts of this tribe from Oklahoma to build a casino? A Q Yes, we talked about it before the meeting. What is your understanding of why Mr. Quarcini

wanted to support that effort? MR. LOWELL: THE COURT: Objection. Overruled. You may answer.

We wanted to get the -- all the work in the casino We wanted to get

besides building the casino, the union.

all the jobs, the dealers, the maintenance people, we wanted to sign them up under Local 91's jurisdiction. Q Did you have any understanding about whether this

tribe from Oklahoma would be willing for that to happen? A Mr. Quarcini felt that they would be. And he was

very, very anxious to try to get them to come in to the area. Q Bruno. A So let's go back to this meeting with Senator What did Mr. Quarcini seek during that meeting? His cooperation in helping us get the, you know, At the time, the Senecas claimed right

tribe into the area.

to that land, but Mr. Quarcini went to Mr. Bruno and told him that he felt comfortable that the tribe out of Oklahoma

THERESA J. CASAL, RPR, CRR UNITED STATES DISTRICT COURT - NDNY

83 Congi - Direct - Coombe 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 would be able to come in there, they also had some sort of rights, they felt, and that he wanted his cooperation in helping to bring them in. Q A What was Senator Bruno's reaction? He told Mr. Quarcini he would do anything he could

to help him. Q While you were the assistant business agent, did

Local 91 have any benefits funds? A Q A Q Yes, we did. Was there a pension fund? Yes, there was. What was the total amount of the pension fund,

approximately? A Q A Q A Q fund? A Q I believe it was in 1990 -- around '95, '94, '95. How long did you serve as a trustee for the Approximately, between fifty and $60 million. Did the pension fund have trustees? Yes, they did. Were you one of the trustees? Yes, I was. When did you become a trustee for the pension

pension fund? A Q Right up until the day I was arrested. Now, as a trustee, was it your understanding that

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84 Congi - Direct - Coombe 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 A one of the trustees had more influence than the others in investment decisions? A Well, Mr. Quarcini had all the influence. He was

in control of, you know, the decision makin' for the trustees, for the laborers side for sure and somewhat from the employers side also. Q Why was it your understanding that Mr. Quarcini

had, as you put it, all the control for the union trustees? A 'Cause if you didn't agree with him, you wouldn't

be a trustee. Q You also mentioned Mr. Quarcini had some influence

with the employer trustees? A Yes. 'Cause they knew how powerful he was

politically and -MR. LOWELL: trustees knew. THE COURT: Overruled. Continue? Objection as to what the management

THE WITNESS: THE COURT:

You may continue. Okay.

THE WITNESS:

He -- and he had been friends with many of them

for 30, 40 years, and he was also part of them being put on to the fund and they knew that Mr. Quarcini was doing things for their benefit also. And so they were aware that, you And he

know -- of his power, you know, and what he wanted.

THERESA J. CASAL, RPR, CRR UNITED STATES DISTRICT COURT - NDNY

85 Congi - Direct - Coombe 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 usually didn't take no for an answer from anybody, so... MS. COOMBE: Your Honor, the Government moves the

admissions of Government Exhibits GJ-2, GJ-16 and GJ-17. THE COURT: MR. LOWELL: THE COURT: Objections. No, sir. Admitted.

(Government Exhibits GJ-2, GJ-16 and GJ-17 received.) MS. COOMBE: THE COURT: BY MS. COOMBE: Q I'm handing you Government Exhibit GJ-2. Can you May I approach, your Honor? Please.

tell us what that is? A This is the minutes from one of our investment

meetings with the trustees. Q A Q Okay. And the date is July 29 of 1999?

Yes, it is. I'd like to direct your attention to the second It indicates who was present for the meeting. Who was

paragraph.

Mr. Michael Quarcini, Mrs. Cheryl Cicero. Mrs. Cheryl Cicero? A Q A Q

That was Mr. Quarcini's daughter. Mr. Edward Carlo, Mr. Mark Congi, that's you? Um-hum. Mr. Dominick Dellaccio?

THERESA J. CASAL, RPR, CRR UNITED STATES DISTRICT COURT - NDNY

86 Congi - Direct - Coombe 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 A Q A Q A Q A Q trustees? A Mr. Quarcini, Mrs. Cicero, Mr. Carlo, myself and Right. Mr. Angelo Massaro? Right. Mr. Frank Mirabelli? Yes. And Mr. Don Smith? Yes. Can you tell us which of these people were union

Dom Dellaccio. Q All right. I'd like to direct your attention to Can if you'd look at the

the third page of the exhibit.

first full paragraph, not the one on the top, but underneath that. A Q There we go. Do you see where we are, Mr. Congi?

Yes, um-hum. It says, "A lengthy discussion was held regarding It was stated that we had added six managers,

allocation. not five. A Q

Wright Investors' Services another bond manager." Um-hum. Who decided to include Wright Investors' Services

in the search? A Q Michael Quarcini. Did you have any understanding about why

Mr. Quarcini decided to include Wright Investors' Services

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87 Congi - Direct - Coombe 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 A in the search? A Yes. He informed me that Senator Bruno had

business with Wright Investors and it would be to our benefit to invest money with this company. Q Do you have any understanding, did Mr. Quarcini

elaborate on what benefit it would be to the union? A Yes. He -- he felt that -Objection. Overruled. He felt.

MR. LOWELL: THE COURT: MR. LOWELL:

He felt that to make Mr. Bruno happy, that we

would invest with this company and he would, in turn, do us favors in return. MS. COOMBE: THE COURT: BY MS. COOMBE: Q GJ-16. A Q A meeting. Q And I'd like to direct your attention, the date is Mr. Congi, I'm handing you Government Exhibit Do you recognize that? Yes. What is it? It's another minutes from a special investments May I approach, your Honor? You may.

August 10th of 2001? A Right.

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88 Congi - Direct - Coombe 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 4. A Q A All right. I see it now. Q Q A Q Were you still a trustee at the time? Yes, I was. All right. And you see the second paragraph there

indicates who was present? A Q A Q correct? A Q That's true. I'd like to direct your attention to the fourth Actually, the fifth page of the Um-hum. You have to say "yes" or "no," Mr. Congi. I'm sorry, yes. And your name is not listed there, is that

page of the exhibit. exhibit.

I'd like to direct your attention to the second It states, "Mr. Parisi

full paragraph, the last sentence.

recommends pulling the bonds away from all existing managers and transferring them to Wright Investors' Services." A I'm on the wrong page. I am not seeing that. You

said page 5? Q I did. THE COURT: She went back to 4.

I got a little confused, Mr. Congi, I went back to

And if you could please turn now to page 8. Okay.

THERESA J. CASAL, RPR, CRR UNITED STATES DISTRICT COURT - NDNY

89 Congi - Direct - Coombe 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Q You see the fourth full paragraph that starts

Mr. Carlo? A Q Yes. It states, "Mr. Carlo made a motion for the

transfer and kind of the bonds at Phoenix Investment Company to Wright Investors' Services, second by Mr. Massaro, carried"? A Q Yes. Now, this meeting took place in 2001. Was there

any issue of legislative interest to Local 91 at that time? A Yeah. Well, there always was, but in particular,

at the time, Butch was pushing for the -- well, several items. First the Oklahoma tribe, he wanted them, you know, He wanted also --

to come in and to take over the casinos.

there was work that needed to be done on New York State Power Authority, a second phase of a job, he was looking for that money to get awarded. And to try to get this job going And

because, you know, we were in need of work in the area.

of course, there was always the money from DOT for the road jobs because the roads are so bad in Niagara county. Q Now, at the time you were assistant business agent

and also a trustee, is that correct? A Q Yes. Now, based on those experiences, your positions,

did Mr. Quarcini ever express to you what his position was

THERESA J. CASAL, RPR, CRR UNITED STATES DISTRICT COURT - NDNY

90 Congi - Direct - Coombe 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 on whether additional bond money should be given to Wright Investors' Services? A Well, yes. He felt that the more money we gave to

his company, the more help we were gonna get from Senator Bruno. MS. COOMBE: THE COURT: BY MS. COOMBE: Q I'm showing you Government Exhibit GJ-17. And May I approach, your Honor? You may.

that's a statement from Wright Investors' Services for the Local 91 pension fund? A Q Yeah. I'd like to direct your attention down to the -- a You see there's a

little farther on the first page.

beginning market value line, it's approximately $5.1 million? A Q Yes. And then there's deposits underneath that,

approximately $5.2 million? A Q Yes. So after the trustees voted to give Wright this

additional bond money -A Q in bonds? Um-hum. -- Wright was managing approximately $10 million

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91 Congi - Direct - Coombe 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 A Q A Yes. Was that a significant portion? It was huge. It was almost 20 percent of our

total, you know, pension -- our monies. Q Did any employee of Wright ever disclose that

Senator Bruno was being paid by Wright Investors' Services? A Q Never to me. Did any employee of Wright ever disclose that

there was any relationship between Senator Bruno and Wright Investors' Services or The Winthrop Corporation? A Q No. Are you aware of whether Mr. Quarcini ever took

Senator Bruno on a helicopter ride? A Q A Yes, he did. When did that occur? Before one of our golf tournaments. Mr. Quarcini

had asked Senator Bruno if he could use his name to -- on our letterhead to -- we had a golf tournament every year and if he would co-sponsor our golf tournament. And this one

particular year, Mr. Bruno flew in and Mr. Quarcini arranged for a helicopter ride to take him over the Horseshoe Falls. Q A Who went on the helicopter ride? Mr. Quarcini, Senator Bruno, George Maziarz and I

believe Mark Zito. Q What was the purpose of the helicopter ride?

THERESA J. CASAL, RPR, CRR UNITED STATES DISTRICT COURT - NDNY

92 Congi - Direct - Coombe 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 A To show Mr. Bruno the difference between Niagara As the

Falls, Ontario, and Niagara Falls, New York.

Horseshoe Falls splits them and the helicopter ride takes you right over the falls, and so, underneath, you got the water and you're surrounded by the Horseshoe Falls. If you

look to your right, Niagara Falls, Ontario, is just a spry city, it's all done up, very clean, new buildings are being built over there, and to the left you have Niagara Falls, which is delapidated and just, you know, terrible. Q Was Mr. Quarcini hoping to convince Senator Bruno

to do anything about that situation? A Yes, he was. He wanted to show them the

difference, you know, between the two areas, you know. Q Was Mr. Quarcini, is it your understanding that

Mr. Quarcini was hoping that Senator Bruno could help in some way? A Yes. You know by showing him, in person, how bad

it was, he was hoping that Mr. Bruno, through his influence, could help bring more money into the area. Q A Q A Was there a dinner after the golf tournament? Yes, there was. Where did the helicopter land? Right before you go over the bridge, I believe it

was -- there's a hotel right there that had a helicopter service. And then -- but Mr. Bruno was flown to the golf

THERESA J. CASAL, RPR, CRR UNITED STATES DISTRICT COURT - NDNY

93 Congi - Cross - Lowell 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 course after that, over the falls, he was flown to the golf course. Q Now, during the dinner, did Mr. Quarcini say

anything about the helicopter ride? A Yeah, he made a joke, he was talking about the

ride and he told everybody in attendance how he had taken Mr. Bruno up into the helicopter ride and showed him and then he said that he told Mr. Bruno that if he didn't get money for us to fix up the area, he was gonna throw him out of the helicopter. MS. COOMBE: THE COURT: May I have a moment, your Honor? You may.

(Pause in proceedings.) MS. COOMBE: THE COURT: MR. LOWELL: CROSS-EXAMINATION BY MR. LOWELL: Q Good morning, Mr. Congi. My name is Abbe Lowell, I have nothing further, your Honor. Cross-examination. Yes, sir.

I am one of Mr. Bruno's lawyers. A Q Good morning. During your testimony, you talked a lot about how

Mr. Quarcini, is that how he says his name? A Q Quarcini. How he felt, right?

THERESA J. CASAL, RPR, CRR UNITED STATES DISTRICT COURT - NDNY

94 Congi - Cross - Lowell 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 A Q Um-hum. Well, yeah.

And in telling us how he felt, are you telling us

what Mr. Quarcini, from time to time, said to you and then how you interpreted it, is that right? A When I stated -- when Mr. Quarcini told me

something -Q A Um-hum. -- that was his opinion, that was his, you know,

what he was going to do or express, that's how he felt. Q So you were telling us about things that You used the word

Mr. Quarcini said and then his opinion. "opinion," correct? A Q Yes.

What kind of guy was Mr. Quarcini?

Somebody who

liked to brag and show how powerful he was, or somebody who was timid and shy? A figure. No. He was a very powerful figure, very powerful

He wasn't -- he wouldn't just talk to anybody, you But he let people know that -- who he was

know what I mean.

and, you know, that he knew people. Q And as to my question, somebody who liked to sort

of brag or somebody who was sort of shy? A I hate saying bragger, because he would only talk But once in awhile he would,

to us close to him like that.

you know, say other things to other people.

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95 Congi - Cross - Lowell 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Q Let me make sure I also understand the background

of your testimony. A Q Sure. You started by explaining that you had been

convicted of a crime. A Q A Q A Yes. And you said it was racketeering? Yes. What did you do? What I did was anything Mr. Quarcini told me to I followed his direction.

do, I did. Q A Q A Q A Q A Q A Q A

Okay. You want specifics? I want to know. Did you hurt people?

I ordered people to hurt people. Okay. Did you lie to people?

Did I what? Did you lie to people? Did I lie to people? Have you lied to people? Not the people that I worked with. But to others? To others? I mean, you know, I'm a pretty I mean, I tell it like it is, so I

straightforward guy.

wouldn't say I'm a liar, no.

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96 Congi - Cross - Lowell 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Q Have you lied to people in the course of getting

done what you want to get done? A I just didn't always tell them the truth. Or I

just didn't tell 'em at all. Q So you ordered people to hurt people and sometimes

you didn't lie, but you just didn't tell them the truth. That's different in your head? A Q A Q A Q A Q A Sure. And you said that you are serving a sentence now? Yes, sir. What's the length of that sentence? Fifteen years. When did you start it? I started in -- August 5, 2005. And so you got a ways to go? Right now I've got about eight years and three

months to go. Q And it would be good if you could get a way to get

your sentence a reduced, wouldn't it be? A Q A It would be good you said? Yeah. Anybody in prison would like to go home. There isn't anybody. I mean

everybody I know of. Q

So along the way of your having been convicted for

what you said you did, you also entered into a cooperation

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97 Congi - Cross - Lowell 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 agreement now with the Government, right? A Q Yes. And what you hope to result from that is that your

sentence will be reduced, correct? A Well, when I pled guilty, I agreed at that time as

part of my plea bargain for the 15 years was to be truthful to them about any of my experiences with Local 91. Q A Q Right. And I agreed to do that. And is it your hope at the end of this cooperation

your sentence will be reduced? A Well, at this point, I don't -- you hope for the So there's nothing that I expect at

best, expect the worse. all. Q A

You don't hope to get out early? I would like to see my wife and children, yeah,

but you know, I'm just here, you know, to be truthful and that's all I'm here to do. Q In terms of your being truthful, in terms of the

work of the pension fund of the laborers -A Q A Right. -- you didn't have a big role in that, did you? Mr. Quarcini had all the control of that. I was a

yes or no vote to support whatever he wanted done. Q And if you wanted to hear about what happened at

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98 Congi - Cross - Lowell 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 those trustee meetings, you could call various of the people who attended them, is that right? A Q I'm not understanding you. If you wanted to know what happened at any of the

investment committee meetings or any of the investment meetings for any of the funds that you talked about, there were a number of people who attended those meetings, right? A Q A Q Yeah. You attended one or two, is that right? No. It was more than that.

One or two of the ones that you were asked about

by the Government's attorney. A Q A Q A Q A Q A Q A Q Yes. Yes.

But you weren't the only one, right? Right. Mr. Edward Carlo attended, right? Um-hum. Mr. Angelo Massaro did? Yes. Mr. Yes. Mr. Don Smith attended? Yes. Mr. Massaro, Mr. Mirabelli and Mr. Smith would be Mirabelli attended?

employer trustees, is that fair?

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99 Congi - Cross - Lowell 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 A Q That's true. They're not the only people who attended those

meetings, is that right? A Q No. There are some people who were not even associated

with the unions or employers? A Q A Q Our attorney. Attorney, who was he? Gene Salisbury. And he was an attorney that provided legal advice

at these meetings, correct? A Q Yes. And there was in addition to the attorney another

person named Mr. Parisi? A Q Yes, Dan Parisi. Dan Parisi was an independent advisor of the

pension funds, is that correct? A Yes. And he attended, right, not all the time,

but most of the time. Q How about if we would look on, for example, do you

have in front of you -- I am not sure what you have in front of you. Do you have -MR. LOWELL: Your Honor, to make this simpler,

please, we would like to move into evidence Defense Exhibit J-2.

THERESA J. CASAL, RPR, CRR UNITED STATES DISTRICT COURT - NDNY

100 Congi - Cross - Lowell 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 BY MR. LOWELL: Q Mr. Congi, you'll see that that is on the screen MS. COOMBE: THE COURT: MR. LOWELL: No objection. What is it? Judge J-2 is the May 21, 1999 minutes

of the investment committee meeting Laborers Local 91. THE COURT: MR. LOWELL: THE COURT: MR. LOWELL: THE COURT: MR. LOWELL: So it's J-2 or Defense Exhibit J-2. D-J-2. Admitted. And may I approach, please? You may. Thank you.

(Defendants Exhibit J-2 received.)

as well in front of you, do you see that? A Q Yes. Now you started the testimony you gave today with

Ms. Coombe by talking about a later meeting, one that occurred in July of 1999, right? A Q Yes. But this is two or three months -- two months

earlier, correct? A Q Yes. And if you'll look at the people that are in

attendance, present for the meeting and also present -please, Jon -- present for, the second and third paragraph.

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101 Congi - Cross - Lowell 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Okay, we talked about Mr. Carlo and we talked about Mr. Massaro, Mr. Mirabelli and Mr. Smith. there? A Q Yes. And also present you had identified Gene Salisbury See their names

as the attorney, right? A Q Yes. And you also identified Daniel Parisi as the fund

consultant, right? A Q A Q A Q Yes. And he was there for the meeting? Yes. And so was Jo Anne Govern? Yes. So, as to this meeting, there were any number of

people who could come and give testimony as to what happened and what was considered in addition to yourself, isn't that fair? A Q A Q A Q Yeah. But you're here? Right. Now, Mr. Salisbury he is not convicted, is he? No, he's not. And Mr. Parisi the fund manager, he is not

convicted, is he?

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102 Congi - Cross - Lowell 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 she? A Q A Q No, she's not. But you're here? Yes, I am. Let's look at the meeting. The results of the A Q In. And Miss Jo Anne Govern, she is not convicted, is

investment decisions concerning Laborers 91, that's not a decision that was decided by the trustees on July 29, 1999, without prior discussion, am I correct about that? A Q Yes, you are. So, let's look at this. On the first page of

this -- I am sorry, before I ask you a question, Mr. Parisi, as the independent consultant to the union's pension fund -A Q Um-hum. -- he's net an employee of the pension fund, is He's not a -- sorry, strike is that. He's not

that right?

an employee of the union? A Q Right. And he's not an employee of the managers or the

employers? A Q A Q Right. He is his own entity that provides advice? Yeah. You could say that.

Well, let's look at what the minutes say.

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103 Congi - Cross - Lowell 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 A Q Okay. Let's look at the fifth paragraph. See where it

says, "Mr. Parisi stated that we should start by going over the booklets prepared by him showing performance on all the existing investment firms from the date of the inception." See that? A Q Yep. At the time, was Manning & Napier the entity that

was investing of the funds of this pension fund? A Q I suppose so. Okay. I mean, if that's what it says.

Then, if you look at the next paragraph, it

says, "After going over the performance report, we can decide what, if anything, to do with the existing firms." Do you see that? A Q Um-hum. Yes.

And then it goes on, "If everyone doesn't agree,

then we can vote on who goes, who stays and what the re-allocation of funds will be." A Q Yes. And then look at two lines later, Do you see that?

"Mr. Salisbury" -- that's the lawyer, right? A Q Yes. -- "says we have been waiting a year to make some

decisions," correct? A Yes.

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104 Congi - Cross - Lowell 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Q And then it says in the next paragraph,

"Mr. Parisi, the independent advisor, distributed performance booklets," correct? A Q Yes. And those performance booklets talked about

whether or not the existing managers were doing a good or not a good job with the funds that they were managing, is that fair? A Q Yes. And then if you look at the next page, top, the

minutes go on, "we have a problem with underperformance." Do you see that? A Q Yes. And as I understand it, tell me if you agree,

underperformance means at that point, in May of 1999, the funds of this pension fund were not performing well enough? A Q Yeah, in his opinion. "His" being the person whose job it is to provide

advice as to whether funds were doing well? A Q Right. And then, if you look at five paragraphs down,

please, where it says, "Mr. Salisbury stated that Manning & Napier had all the money," correct? A Q Um-hum. So at that point, one firm had all the investment

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105 Congi - Cross - Lowell 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 funds, is that correct? A Q Yes. And that fund was being said to be

underperforming, is that right? A Q Yes. And then, then if you look further down, it says,

"Mr. Massaro quoted all the rates of money managers, do you see that? A Q Yes. So now you were being presented -- I say you, the

people there, Mr. Massaro was telling you the various rates of various funds, correct? A Q Yes. To compare, right, to see who was performing well

and who wasn't? A Q Right. Okay. Turn to the next page, please. Then it

says "Mr. Massaro" -- who is Mr. Massaro again? A Q A It's Mr. Massaro. I'm sorry. That's okay. He is the head trustee for the

employees -- employers, I'm sorry. Q A Q Okay. Yes. And he's talking here, right? So he is an employer trustee, correct?

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106 Congi - Cross - Lowell 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 cap. A Q Yes. And he is asking Mr. Parisi to read off the names

of new prospective money fund managers, is that correct? A Q Yes. Mr. Parisi had brought such information to the

meeting ahead of time, right? A Q Yes. And then two paragraphs later, Mr. Parisi stated Do you

Simms Capital Management is one of the top firms. see that line? A Q Yes.

And he talks about global and international

trading is all that this particular firm does, you see that? A Q Yes. And it goes on Turner Investment is mostly small

Do you see that? A Q Yes. Let me stop there. The pension and this

particular fund of union funds invested had more than just bonds in it, correct? A Q Yes. So when you were addressing bonds that was a

portion of the entire portfolio? A Q Right. Is that fair?

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107 Congi - Cross - Lowell 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 A Q Yes. And then talked about this entity called Niagara Sorry. Now

Investment Advisors -- said that one already.

if you look down at the next sentence about Mr. Mirabelli -the next paragraph, Jon, please -- Mr. Mirabelli, now Mr. Mirabelli, employer trustee, correct? A Q Yes. Suggested that we pick out the firms that stand

out performance wise, right? A Q Yes. So Mr. Mirabelli is being said in these minutes to

be looking for an entity that will stand out, correct? A Q Yes. Mr. Mirabelli, in your dealings with him, wasn't

looking to lose or waste the pension fund money, was he? A Q No, he wasn't. And Mr. Quarcini even was not looking to lose or

waste the pension fund money, was he? A Q Absolutely not. These funds belonged to the members who

contributed after their hard work -A Q correct? A Yes. Yes. -- to make sure their funds were invested well,

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108 Congi - Cross - Lowell 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Q And then if you'll see the next sentence, it says

Mr. Massaro asked on the existing manager who stays, see that? A Q A Q Yes. Mr. Massaro, an employer trustee, right? Yes. And then if you look at the bottom of the page,

Mr. Massaro talked about all of the returns from these entities as it is said, the Simms Capital, the Phoenix, et cetera, you see those? A Q Yes. And then a whole two months before the document

that Miss Coombe said, do you Wright Investors is on the list, you see that? A Q Yes. Along with one, two, three, four, five, six, Next page?

seven, eight, nine others? A Q A Q Um-hum. Right? Yes. And the performance of all these were being

compared that day, correct? A Q Yes. Now, when you said that ultimately there was some

presentation by Wright Investors' Services and nobody from

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109 Congi - Cross - Lowell 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 'em. Q A Q A Q A Q Right. Right. I'm sorry, you did? Yes. And Mr. Quarcini knew? Yes. And you had no reason to know the other trustees Yes, you knew? Wright said anything about their relationship with Senator Bruno, remember that? A Q Yes. You weren't trying to say to the people at

Laborers 91 and these individuals didn't know that Mr. Bruno had a financial relationship with Wright, were you? A Q Could you repeat that, please? Sure. You knew that Mr. Bruno, in fact, had a

financial relationship with Wright, didn't you? A I -- I knew he had a business relationship with

didn't know that either, right? A or not. Q A you know. Q But you do know that you knew? I can't speak for 'em. I don't know if they knew

I'm assuming some might have, okay. Right. Because you --

Well, he didn't always tell them what he told me,

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110 Congi - Cross - Lowell 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 A Q A Q Yes. And you do knew that he knew? Yes. And not one time, not one single time did he ever

say to you, "By the way, don't tell anybody Mr. Bruno has a financial relationship with Wright," that never came up? A I assume that to be. I never discussed anything

with anybody other than with his permission. Q A Q Okay. No. And so, by the way, if you were at a presentation, But he never told you to?

in which the merits of Wright versus Phoenix, versus NWQ, versus Marine were being discussed, there would be no reason to say, "By the way, don't forget, Mr. Bruno is involved with Wright," right? A Q No, there wouldn't be. Indeed, at that point, you're looking to see

which, to use the phrase that was used before, are the "stand-out performers," correct? A Q Correct. And if you'll turn to page 5 of this document,

please, and this begins -- and if you'll look four down, "We all recognize" -- first of all, it says, "We all recognize." You see that? A Yes.

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111 Congi - Cross - Lowell 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Q "That something has to be done with Manning &

Napier," right? A Q Yes. Because Manning & Napier was not performing as any

of the others that were being compared were performing, correct? A Q Correct. And indeed, it wasn't just Manning & Napier that

were letting you guys down, right? A Q Correct. Look at the next sentence. "We have three

investment firms not performing up to par at present. Clover Capital," right? A Q A Q A Q Yes. "HGK," right? Right. And "Manning & Napier"? Right. So, in freezing time, in mid 1999, the pension

fund was very concerned and needed to make a change, correct? A Q Yes. And then, if you look down to the third from the

bottom, it says, "Mr. Don Smith suggested at the next meeting Mr. Parisi should give us a two-part proposal." Do

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112 Congi - Cross - Lowell 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 you see that? A Q Yes. And then, the Board will vote on Mr. Parisi's

recommendations, you see that? A Q A Q Yes. And Mr. Smith another employer trustee, correct? Yes. And then it says the next paragraph this is not

going to be just let's consider Wright, was it? A Q Right. Indeed, it says the firms to be taken into

consideration are, H.C. brown, HGK, Clover Capital, Executive, Manning & Napier, and the prospective managers are Phoenix, NWQ, Freedom Capital, Wright Investment and Niagara Investment. A Q Correct. And Mr. Parisi, between then and the next meeting, Correct?

was going to look at which of the existing fund managers should be kept? A Q A Q Right. And which new ones should be added? Right. And then there was the meeting that you were asked

about, and that, if you could put up -- do you have GJ-2? A Yes, I have.

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113 Congi - Cross - Lowell 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Q Do you have it in front of you? MR. LOWELL: Could we switch over, Mr. Law, I Could you please put up GJ-2?

think that was added today? Thank you very much. Q

And at this meeting, if you look at the second

paragraph, and present were again Mr. Quarcini, correct? A Q A Q A Q A Q A Q A Q A Q A Q A Q Yes. And you were there? Yep. And Mr. Mirabelli was there again? Yes. And Miss Massaro -- Mr. Massaro? Yes. And Mr. Smith? Right. Were three of the employer trustees, correct? Um-hum yes. And your lawyer was there again? Yes. And Mr. Parisi, in fact, was there? Yes, he was. And so was Ms. Govern? Yes, she was. And this was after the minutes from the last one

required Mr. Parisi to do something, right?

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114 Congi - Cross - Lowell 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 A Q Yes. So, if you'll look down seven paragraphs, to the

sentence that begins "Mr. Parisi presented," do you see that? A Q Yes. And it says, "Mr. Parisi presented proposed

allegation -- allocation sheet to the board (copy attached.)" A Q See that?

Yes. At that meeting, Mr. Parisi actually made a

recommendation as to how much of what funds should go with what managers, correct? A Q Yes. And it says he pointed out the total assets of

June 30, 1999, are $48,545,508.10? A Q Yes. And then it says in the next sentence, a

discussion -- "during the discussion of the allocation sheet." A Q You see that? Yes. So it wasn't that Mr. Parisi simply put a piece of

paper on the table and discussed the various performances, there was a discussion about it? A Q Yeah. And then what followed was a discussion about fees

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115 Congi - Cross - Lowell 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 as well, correct? A Q Yes. What that meant was Mr. Parisi was comparing not

just the performance of these investment managers but how much it was going to cost the pension fund to use any of them, correct? A Q A Q Correct. Because that was a factor as well? Yes. And then if you look at the last page, and

again -- by the way, look at the very last page, who prepared these minutes? A They were prepared by Miss McGovern (sic) with

assistance from Miss Cicero. Q And this one says clearly on the bottom Jo Anne

Govern, correct? A Q Yes. So a good person to find out what happened at this

meeting would be Jo Anne Govern, right? A Q Yeah, I guess so. And if you look at the first full paragraph on

this page, not the top, the second, I'm sorry, just isolate the second, please, "a lengthy discussion." The second

paragraph on this document, which by the way is the investment committee meeting minutes, "A lengthy discussion

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116 Congi - Cross - Lowell 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 please? THE COURT: MR. LOWELL: Please. Thank you. Q was held regarding allocation." A Q Yes. So now we have Mr. Parisi letting out his Do you see that?

recommendation, we have the materials he provided and now there's a lengthy discussion, right? A Q Right. And what happened at the end of that meeting was

the fund which had put all of its money with one manager who was underperforming now divided, correct? A Q Yes. And didn't divide it from the one that was There were

underperforming to Wright Investors, did it? five others? A Q Right.

And I'd like to show you, please, what has been

marked and we've provided the Government and seek admission by agreement of Defense Exhibit J-57? MS. COOMBE: THE COURT: No objection. Admitted.

(Defense Exhibit J-57 received.) And this one -MR. LOWELL: And may I approach the witness,

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117 Congi - Cross - Lowell 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 he? A Q A Q A Q Yes. And again Mr. Daniel Parisi is there, isn't he? Yes. And Miss Govern is there? Yes, she is. And it said, now this is after the meeting that we Q BY MR. LOWELL: Q A Q Do you have that in front of you, Mr. Congi? Yes. Okay. This is a July 21, 2000 minute meeting. (Pause in proceedings.) All right. You see this is July 21, 2000, you see

it's an another pension fund investment meeting? A Q A Q see that? A Q A Q A Q Yes. Now, you're not there, are you? Nope. Mr. Quarcini isn't there, is he? Nope. But Mr. Salisbury the lawyer is still there, isn't Yes. And you see present again were Mr. Carlo, correct? Yes. As well as Mr. Massaro, correct, and Mr. Smith,

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118 Congi - Cross - Lowell 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 talked about, this is a full year later from the last meeting, correct? A Q isn't he? A Q Yes. Says, "Mr. Parisi made a proposal of the breakdown Yes. Mr. Parisi is still monitoring the performance,

of the Manning & Napier account," see that? A Q Yes. So you guys from the last meeting of a year ago

still provided some funds for Manning & Napier to keep, is that right? A Q Yes. And if you'll look at the paragraph, it says,

"Manning & Napier has continued to perform under the annual expectations," you see that? A Q right? A Q Yes. And if you turn to the next page, it says, Yes. So they still weren't doing a good job, is that

"Mr. Parisi explained that once the realignment of the Manning & Napier account is complete, then the following deductions per month would permit the pension funds to be met." See that?

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119 Congi - Cross - Lowell 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 A Q Yes. And then there's a series of monthly deductions

ranging from 62,000 down to 50,000? A Q A Q Yes. You see is that? Um-hum. And there are five separate fund managers that

have been awarded the ability to invest funds, correct? A Q A Q A Q A Q A Q A Q Yes. One is Harold C. Brown, right? Um-hum, yes. One is Key Asset Management, correct? Yes. One is Niagara Investment? Yes. One is Phoenix Investment? Yes. And then one in Wright Investors' Services, right? Yes. So, by no means did all of these funds go to

Wright, did they? A Q No. And by no means did they go to Wright on the basis

of anything Mr. Parisi omitted from his presentation, it was all there that day, wasn't it?

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120 Congi - Cross - Lowell 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 A Q A Q According to Mr. Parisi. Well, not according to Mr. Parisi. Look who

signed the bottom. A Q A Q Miss Govern. Who created this document as well? Yes. Have you talked to Miss Govern prior to your

testimony? A Q No, I have not. Have you compared your understanding and your

memory and opinion with her as to what happened? A Q No, I haven't. Let's go further. If you'll look at Government

Exhibit GJ-16.

Has it been admitted? Yes. It has been, yes. My understanding.

MS. COOMBE: MR. LOWELL: MS. COOMBE: Sixteen? GJ-16.

I have it. Would you look at GJ-16. Is it in

Okay.

front of you? A Yes, sir. MR. LOWELL: on the screen? Q And therefore, Jon, could you put it

Thank you.

This is now August '01, couple of months later

than the last time I showed you the document before?

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121 Congi - Cross - Lowell 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 A Q Yes. And let's look at who is at this meeting. Present

for the meeting are, again, the same people except you're not there, right? A Q A Q A Q A Q A Q A Q A Q right? A Q Yes. Actually it says Mr. Quarcini is the business Right. But Mr. Carlo is there, right? Yes, he is. Mr. Mirabelli is there? Yep. Mr. Smith is there? Yes. Mr. Massaro is there? Yes. Mr. Quarcini is not there? Yes. Mr. Salisbury the lawyer is there? Yep. Mr. Parisi the independent advisor is there,

manager listed there? A Q A I don't see his -- oh, yeah, yeah, okay. And Mrs. Govern, she's there? Yes.

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122 Congi - Cross - Lowell 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Q So if we wanted to know what happened at this

meeting by the people who were there, again Miss Govern would be a good person to call, right? A Q A Q Yeah. For -- I mean for what she wrote.

For what she wrote? Yeah. And Miss Govern's job was to write down what was

happening at the meetings, correct? A Q In a sense, yes. She didn't make this stuff up, is that what you're

trying to suggest, Mr. Congi? A No. What I'm tryin' to say is she didn't do this

by herself. Q A Okay. Miss Cicero helped her write, you know, whatever

Mr. Quarcini wanted there. Q Miss Cicero told Miss Govern what it was

Mr. Quarcini wanted her to write in the minutes? A Well, if there was something important he wanted Miss Govern may not

highlighted, make sure it's in there.

have thought it was important enough to put in the minutes, so Mrs. Cicero would tell that to Jo Anne. Q But whatever, it happened at the meeting, whatever

is written there happened at the meeting? A Yes.

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123 Congi - Cross - Lowell 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Q A Q There was a meeting? There was a meeting. And these things that are said to have been

discussed were discussed? A Q A Q A Q Yes, they were discussed. And Mr. Salisbury, et cetera, they were there? Yes. That wasn't made up? That's right. Now, if you look at the next page, it says in the

first paragraph, first full paragraph, "Mr. Parisi said." It says, "Mr. Parisi said that Manning & Napier was upset that we were taking all money from them to meet the monthly pension needs." A Q A Q correct? A Q That's correct. And then, if you look two paragraphs down, it Yes. So they weren't happy in losing the business? That's correct. But it was the right thing for the fund to do, Do you see that?

says, "Mr. Massaro explained to Mr. Parisi that Mr. Frosolone is doing an audit." A Q Who is Mr. Frosolone?

He is our accountant for the funds. So the funds not only had the advice of an

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124 Congi - Cross - Lowell 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 attorney and an independent advisor, but it also had an accountant? A Q A Q Yes, it did. And they were, the accountant, was doing an audit? Yes. And that's to determine whether or not the funds

had been put where they were supposed to have been put, is that right? A Q That's right. And it's to ensure that these things do not happen

and will never happen again, correct? A Q Yes. The independent advisor, the attorney and the

accountant are making sure that the funds are invested properly, right? A Q Yes. And if you'll look down at the last full paragraph And this

on the page that begins, "Mr. Parisi continued." is still Mr. Parisi giving a report, right? A Q Yes, it is.

"With a second issue that arose during the course

of the year, he explained that originally we hired two fixed income managers, Phoenix and Wright." And it says, "Phoenix

is more aggressive on credit risk and trading activity with bonds to enhance the return." See that?

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125 Congi - Cross - Lowell 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 A Q Yes. And then it says, "Mr. Parisi explained that we

have ten managers on the account," right? A Q Yes. So, at this point, having gone from the firm of

Manning & Napier, the fund had ten separate managers looking after its funds, correct? A Q Correct. Now, if you turn to page 4 of this document, And the paragraph right before the

it's -- that's right.

bottom, the last three sentences that Ms. Coombe asked you about, it said Mr. Parisi recommended -- Mr. Parisi recommends pulling the bonds away from all existing managers and transferring them to Wright Investors' Services. that sentence? A Q A Q Yes. You wrote to that sentence with Ms. Coombe, right? Yes. It's the only thing she asked you about in that See

document concerning the bonds and the investment, correct? A Q Yes. But as the minutes actually show, there were ten

different managers, right? A Q Correct. And this bond part was only part of the

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126 Congi - Cross - Lowell 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 investments, correct? A Q Yes. And this had come about after the process that you

and I have gone over over the last three minutes, correct? A Q Yes. Take a look at this document and tell the ladies

and gentlemen of the jury how many pages of presentations and notes and comparisons are being presented as to what happened that day, how many pages? A Q A Q Nine pages. And who signs them? Jo Anne Govern. What time did the meeting start? Look at the

first page if you need to be refreshed. A Q A Q A Q Yeah, 9:45 AM. And look at what time the meeting ended? 2:15. How many hours is that? Five hours and some, a little under. During that, the best interests of the pension

fund was being discussed with all of the individuals indicated, correct? A Q A With an exception of about an hour-and-a-half. For lunch? Right.

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127 Congi - Cross - Lowell 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Q A And there was discussions during lunch as well? I mean, there could have been about the fund, but

usually when we ate, we didn't talk about stuff like that. Q Now, these events of what led up to the decision

to consider Wright started in the minutes that we were indicating was 1999, correct? A Q A Q Yes. And the last one I showed you was 2001, correct? Correct. And the conversation that Ms. Coombe asked you

about casinos and about the trip, those were a couple years later than that, correct? A Q A Later than 2001? Yeah. 2002, 2003, later?

Well, we weren't there past 2002, of May, okay.

So they were before -- they were around 2000, year 2000. Q A Are you sure that's when the helicopter ride was? No, I didn't say the helicopter ride. You just

asked two different questions, didn't you. Q A Q A Q A I'll change it. The helicopter ride was later?

No, the helicopter ride was before. Before what? Before this 2001. Okay. When?

Our tournament was in, usually, I think July, June

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128 Congi - Cross - Lowell 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 or July, something like that, I don't exactly know when. It

was neither 2000 or 2001, possibly, that the helicopter ride took place. Q But the one time we know it didn't occur was

before the 1999 meeting where the results of your existing manager was said to have been underperforming and a decision to change was made, correct? A Q A Q A Q That the helicopter didn't take place? Correct? It did not. It did not? It did not. Now, you indicated that you had a meeting and you

identified among others a Mr. Spano and a Mr. Maziarz, do you remember that? A Q right? A Q A Q Maziarz? A Q Yes. A member of the New York State Senate? Yes. A member of the New York State Senate, correct? Yes. And by Maziarz, you're referring to Senator Yes. By Spano, you must be referring to Senator Spano,

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129 Congi - Cross - Lowell 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 A Q Yes. Mr. Spano would be the same Mr. Spano who is the

Chairman of the Labor Committee of the State Senate, would that be right? A Q I don't know that. What you know about their positions is also

something you just know from what you remember Mr. Quarcini telling you? A Well, that was the first time I met Nick Spano at I didn't know what he did before

that meeting in Albany. that or after that. Q A Q A Q Okay. Right.

That wasn't your area of expertise?

Do you know a man by the name of Frank Lilly? It sounds familiar, but I don't recall. Okay. Now ultimately did it come to pass that

Laborers 91 did or did not change its portfolio again? A Q A Q A Q After the last time? Correct. They could have. I don't recall.

But after 2002, you were no longer there? Correct. Now, one thing I should have made clear, but I

didn't, the plea of guilty that you entered had nothing to do in any way or any fashion with any of your dealings with

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130 Congi - Cross - Lowell 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Senator Bruno, did it? A Q A Q A That's correct. He didn't know about your activities, did he? Well, I don't know that. Did you tell him? No. But you know when you dealt with He was

Mr. Quarcini, everybody knew who Mr. Quarcini was.

one of the strongest labor leaders in New York State and he had a reputation, so... Q people? A Q A Sure. Did everybody in New York State know that? People in other labor organizations did. And Did he have a reputation of ordering you to hurt

George Maziarz knew what we did.

I mean, he didn't -- we

didn't tell George Maziarz what we did, but he read about it in the newspaper and he was very aware of Mr. Quarcini's representation. Q A Q Senator Maziarz was? Sure. And he would be a good person to ask of the

activities, correct? A He would know what we did. I didn't really care

for Mr. Maziarz that much. Q What did he think about you?

THERESA J. CASAL, RPR, CRR UNITED STATES DISTRICT COURT - NDNY

131 Congi - Cross - Lowell 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 A Q A really. Huh? What did he think about you? I don't think he thought anything about me, I don't know. He just wasn't -- it was hello, He catered to

good-bye and that was the end of it. Mr. Quarcini.

Probably looked at us as we weren't important

and Mr. Quarcini is the one he should be important to. Q If you remember my question, it was: None of what

you pled guilty to had nothing to do with Mr. Bruno, correct? A Q That is correct. In addition to admitting that you hurt people,

what else did you do that you pled guilty for? A We pled guilty to extortion, which was extorting

jobs from nonunion contractors and some union contractors, too, I guess. Q Yeah. You said "we." You pled guilty. I'm

asking about your plea. A Q A Q A Myself? Yes.

What did you do? Right. You extorted people? I extorted -- according to the Government. But according to the That's

not my definition of extortion.

government, I extorted jobs from nonunion contractors.

THERESA J. CASAL, RPR, CRR UNITED STATES DISTRICT COURT - NDNY

132 Congi - Cross - Lowell 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 it. Q So extorting to you is union activities and lying Q You have a different word for it than the

Government has? A I call it union activities. That's what I call

is just not telling the truth, is that right? A Lying is not telling the truth. I didn't say

that, you did, I guess. Q A Q I actually thought I was quoting you, but -I'm sorry -Earlier, I asked you if you lie, you said

sometimes you don't tell the truth? A Q Oh, I see. Do you have a different vocabulary when it comes

to the bad things you do? A No. I know I did bad things. That's why I'm

serving 15 years in jail. Q A But one of them you don't think was extortion? I guess in the Government's terms it was When I

extortion, but in my terms it was union activities.

go to a contractor and ask them to join the union and they tell me no, okay, I, as a union -- head of a union, I think it's my right as a person working for that union to go out and attempt to get that contractor to sign a contract with us.

THERESA J. CASAL, RPR, CRR UNITED STATES DISTRICT COURT - NDNY

133 Congi - Cross - Lowell 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Q Got it. So, you ordered people to hurt people, he What else did you say you did wrong in What were the facts? Not the law.

extorted people.

your plea agreement? What did you do? A

My main job was to, you know, bring -- to do what

Mr. Quarcini asked me to do. Q Now I am trying to find out what that actually Talked about hurting people, talked

ended up your doing. about extorting. A

Anything else you want to tell me you did? There is so many

I think there was 18 counts.

other things. Q A Wow. I am sure there are other things. Offhand, you

know, specifics, I don't, you know -Q How can we check as to be sure that the things

that you say Butch Quarcini said to you were actually said to you? A He's dead, isn't he? Look in my plea agreement 'cause that's what I

agreed to. Q You think that the things you testified to here

today are in your plea agreement? A Q That I pled guilty to are in my plea agreement. Okay. Take your plea agreement. No, I don't think -The plea agreement is not in evidence. You still have

it in front of you? THE COURT:

THERESA J. CASAL, RPR, CRR UNITED STATES DISTRICT COURT - NDNY

134 Congi - Cross - Lowell 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Are you offering it, Counselor? MR. LOWELL: THE COURT: MR. LOWELL: THE COURT: MR. LOWELL: following up. BY MR. LOWELL: Q Do you believe anything you said about the No, I'm not. All right. I could. Then let's not refer to. I am sorry. He did so, I was

helicopter ride is in the plea agreement? A Q No, I do not. Do you think anything you said about what

Mr. Quarcini felt about things was in your plea agreement? Think it's there? A Well, what he felt about things is when he asked

me to do something, I did it, so -Q That's not my question. You said what I asked you

is in your plea agreement and I'm asking you if that's a truthful statement? A Q Yes. Is it truthful that the things you testified to

here today is in your plea agreement? A Q No. So how do I -- how do we find out whether the He's dead, isn't

things Mr. Quarcini said he actually said?

THERESA J. CASAL, RPR, CRR UNITED STATES DISTRICT COURT - NDNY

135 Congi - Redirect - Coombe 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 he? A Yes, he is. MR. LOWELL: THE COURT: MS. COOMBE: REDIRECT-EXAMINATION BY MS. COOMBE: Q Could we still look at GJ-2? Do you have those That's all I have. Further questions? Yes, your Honor. Thank you, sir.

documents, Mr. Congi, or do you need me to find it? A Q No, I have it. You see present for the meeting there and a number

of names listed? A Q Yes. Other than you and Mr. Quarcini, were any of the

other trustees listed there indicted? A Mr. Dellaccio was indicted. Mr. Carlo was a Miss Cicero was

co-conspirator, unindicted co-conspirator. an unindicted co-conspirator. And that's it. MS. COOMBE: MR. LOWELL: RECROSS-EXAMINATION BY MR. LOWELL: Q

Mr. Quarcini was indicted.

I have nothing further, your Honor. Just one.

The union guys that you identified, those people

were involved in your scheme, the ones you just identified?

THERESA J. CASAL, RPR, CRR UNITED STATES DISTRICT COURT - NDNY

136 Congi - Redirect - Coombe 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 A Yeah, yeah. Well, Mr. Dellaccio was pretty much Mr. Carlo has a supporting

to my extent. part in it. Q A Q

Mrs. Cicero was.

But not Mr. Massaro? Angelo Massaro? No.

He's not indicted and none of the employer

trustees were, right? A Q A Q A Q A No. Not the lawyer, right? No. Not the investment advisor, right? Right. And not the accountant? Right. MR. LOWELL: THE COURT: MS. COOMBE: THE COURT: That's all I have, Judge. Anything further? Nothing further, your Honor. All right. We'll adjourn for the

luncheon recess, ladies and gentlemen, until one o'clock. Why don't you remain seated for a moment, Mr. Congi. (Lunch recess taken at 12:00 Noon.)

THERESA J. CASAL, RPR, CRR UNITED STATES DISTRICT COURT - NDNY

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