Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that VINCENT ESPOSITO was sentenced today to 24 months in prison by U.S. District Judge Victor Marrero for conspiring to commit racketeering offenses with members and associates of the Genovese Crime Family of La Cosa Nostra.  Judge Marrero also imposed financial penalties, including approximately $3.8 million in forfeiture, a $20,000 fine, and restitution to be determined.  ESPOSITO previously pled guilty on April 10, 2019, before U.S. Magistrate Judge Sarah Netburn. 

U.S. Attorney Geoffrey S. Berman said:  “By his own admission, for more than a decade Vincent Esposito made millions with members of the Genovese Crime Family by extorting payments, demanding kickbacks, committing fraud, and instilling fear.  Today Esposito has been sentenced to prison for racketeering conspiracy.”

According to the Indictment and statements made during public court proceedings:

La Cosa Nostra, also known as the “Mob” or the “Mafia,” operates through entities known as “Families.”  One of the Families operating in the New York City area is the Genovese Crime Family.  For years, continuing until 2017, ESPOSITO conspired with other members and associates of the Genovese Crime Family to commit a wide range of crimes to enrich themselves, including multiple acts of extortion, honest services fraud, and bribery.  Among other things, ESPOSITO directed the long-running extortion of a union official (“Official-1”) for annual tribute payments of more than over $10,000, and had a number of lower-ranking members of the enterprise collect money and convey threats to Official-1 on Esposito’s behalf.  In another extortion scheme, ESPOSITO’s co-conspirators extorted a different union official (“Official-2”) and a financial adviser (the “Adviser”) for a cut of commissions made from union investments.

At the time of ESPOSITO’s arrest, the Federal Bureau of Investigation (“FBI”) executed a search warrant on his home and seized more than $3.8 million in U.S. currency hidden throughout the residence, along with an unregistered handgun, ammunition, brass knuckles, and lists of made members of the Genovese Crime Family.  Under the terms of his guilty plea, ESPOSITO agreed to forfeit the more than $3.8 million seized by the FBI as criminal proceeds resulting from the offense. 

*                *                *

In addition to the prison term, ESPOSITO, 51, of New York, NY, was sentenced to three years of supervised release, and was ordered to forfeit $3,816,685.59 and to pay a fine of $20,000.

Mr. Berman praised the outstanding investigative work of the FBI, the U.S. Department of Labor’s Office of Inspector General and Office of Labor-Management Standards, the New York City Police Department, and the Special Agents of the United States Attorney’s Office for the Southern District of New York.

The case is being prosecuted by the Office’s Violent and Organized Crime Unit.  Assistant U.S. Attorneys Kimberly J. Ravener, Jared Lenow, and Jason M. Swergold are in charge of the prosecution. 

Geoffrey S. Berman, the United States Attorney for the Southern District of New York, William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), Michael C. Mikulka, Special Agent-in-Charge, New York Region, U.S. Department of Labor, Office of Inspector General (“DOL-OIG”), and James P. O’Neill, Police Commissioner of the City of New York (“NYPD”), announced that VINCENT ESPOSITO pled guilty today to conspiring to commit racketeering offenses with members and associates of the Genovese Crime Family of La Cosa Nostra.  ESPOSITO pled guilty before U.S. Magistrate Judge Sarah Netburn.  

U.S. Attorney Geoffrey S. Berman said:  “As he admitted today, for more than a decade Vincent Esposito made millions with members of the Genovese Crime Family by extorting payments, demanding kickbacks, committing fraud, and instilling fear.  Thanks to an extensive investigation by our law enforcement partners, Esposito has been unmasked as a criminal and put out of business.”

FBI Assistant Director William F. Sweeney Jr. said:  “The shakedown of union officials, racketeering and extortion may sound like throwback behavior of mobsters who operated decades ago.   However, the bread and butter of the mafia is to make money, so the illegal enterprises they’ve always engaged in are being used even in the modern era.  The FBI New York Organized Crime Task Force will investigate whatever illicit activity the mob chooses to pursue, in order to stop their criminal behavior.”

DOL-OIG Special Agent in Charge Michael C. Mikulka said:  “Vincent Esposito engaged in a scheme to extort annual cash payments from a union official by threatening violence or the loss of their position if they did not give in to his extortionate demands.  Esposito’s guilty plea affirms the U.S. Department of Labor Office of Inspector General’s commitment to protecting unions and their members from those who seek to exploit unions for their own personal gain.  We will continue to work with our local and federal law enforcement partners to ensure unions can operate in a fair and just environment and function within the confines of federal law.”

Police Commissioner James P. O’Neill said:  “The NYPD, its law enforcement partners and others in government are committed to eradicating organized crime in the City of New York.  Associates of La Cosa Nostra – or any other enterprise that seeks to enrich its members through racketeering and the threat of violence – should know that investigators will build strong cases against them and they will be prosecuted.  I want to thank the members of the NYPD, the FBI, the Southern District and the members of the U.S. Department of Labor’s Office of Inspector General and Office of Labor-Management Standards for their work on this case.”    

According to the Indictment and statements made during public court proceedings:

La Cosa Nostra, also known as the “Mob” or the “Mafia,” operates through entities known as “Families.”  One of the Families operating in the New York City area is the Genovese Crime Family.  For years, continuing until 2017, ESPOSITO conspired with other members and associates of the Genovese Crime Family to commit a wide range of crimes to enrich themselves, including multiple acts of extortion, honest services fraud, and bribery.  Among other things, ESPOSITO directed the long-running extortion of a union official (“Official-1”) for annual tribute payments of more than over $10,000, and had a number of lower-ranking members of the enterprise collect money and convey threats to Official-1 on Esposito’s behalf.  In another extortion scheme, ESPOSITO’s co-conspirators extorted a different union official (“Official-2”) and a financial adviser (the “Adviser”) for a cut of commissions made from union investments.

At the time of ESPOSITO’s arrest, the FBI executed a search warrant on his home and seized more than $3.8 million in U.S. currency hidden throughout the residence, along with an unregistered handgun, ammunition, brass knuckles, and lists of made members of the Genovese Crime Family.  As part of today’s guilty plea, ESPOSITO agreed to forfeit the more than $3.8 million seized by the FBI as criminal proceeds resulting from the offense. 

Mr. Berman also announced that two other co-defendants, FRANK COGNETTA and VINCENT D’ACUNTO, both former union officials, previously pled guilty to conspiracy to commit racketeering.  As part of the conspiracy, D’ACUNTO participated in the extortion of Official-1.  Also as part of the conspiracy, COGNETTA engaged in various schemes to defraud his union of his honest services by, among other things, soliciting and accepting bribes and steering union benefit plans into investments in exchange for kickbacks, which resulted in more than $1 million in unlawful payments.  Charges remain pending against two of ESPOSITO’s co-defendants, Steven Arena and Frank Giovinco, with trial scheduled for June 17, 2019, before U.S. District Court Judge Victor Marrero.  The charges in the Indictment are merely accusations and the defendants are presumed innocent unless and until proven guilty.

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ESPOSITO, 51, pled guilty to one count of conspiracy to commit racketeering, which carries a maximum sentence of 20 years in prison.  The statutory maximum sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.  ESPOSITO’s sentencing is scheduled for July 10, 2019, before Judge Marrero.

Mr. Berman praised the outstanding investigative work of the FBI, the U.S. Department of Labor’s Office of Inspector General and Office of Labor-Management Standards, the NYPD, and the Special Agents of the United States Attorney’s Office for the Southern District of New York.

The case is being prosecuted by the Office’s Violent and Organized Crime Unit.  Assistant U.S. Attorneys Kimberly J. Ravener, Jared Lenow, and Jason M. Swergold are in charge of the prosecution. 

Geoffrey S. Berman, the United States Attorney for the Southern District of New York, William F. Sweeney Jr., Assistant Director-in-Charge of the New York Division of the Federal Bureau of Investigation (“FBI”), and James P. O’Neill, the Commissioner of the New York City Police Department (“NYPD”), announced the unsealing today of an Indictment charging VINCENT ESPOSITO, STEVEN ARENA, FRANK GIOVINCO, FRANK COGNETTA, and VINCENT D’ACUNTO, JR., each a member or associate of the Genovese Organized Crime Family of La Cosa Nostra, with racketeering conspiracy and related offenses arising out of a multi-year investigation.  COGNETTA was arrested on January 8, 2018, and charged by criminal complaint.  The remaining defendants were arrested this morning and are expected to be presented before U.S. Magistrate Judge Barbara C. Moses later today.  The case has been assigned to United States District Judge Victor Marrero.

The following allegations are based on the Indictment and other documents filed in Manhattan federal court[1]:

 

La Cosa Nostra, also known as the “Mob” or the “Mafia,” operates through entities known as “Families.”  One of the Families operating in the New York City area is the Genovese Crime Family.  From 2001 to 2017, ESPOSITO, ARENA, GIOVINCO, COGNETTA, and D’ACUNTO, along with other members and associates of the Genovese Crime Family, committed a wide range of crimes, including multiple acts of extortion, honest services fraud, and bribery.  In particular, and as charged in the Indictment, ESPOSITO conspired with ARENA and D’ACUNTO to extort annual cash payments from an officer at a labor union by threatening the officer with violence and the loss of the officer’s job.  COGNETTA, himself a labor union officer, engaged in multiple schemes to defraud his union of his honest services by, among other things, soliciting and accepting bribes and steering union benefit plans into investments in exchange for kickbacks.

 

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Set forth below is a chart containing the names, ages, residences, charges, and maximum penalties for the defendants.  The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.

 

Mr. Berman praised the outstanding investigative work of the FBI, the NYPD, the U.S. Department of Labor’s Office of Inspector General and Office of Labor-Management Standards, and the Special Agents of the United States Attorney’s Office for the Southern District of New York.

 

The case is being prosecuted by the Office’s Violent and Organized Crime Unit.  Assistant U.S. Attorneys Jared P. Lenow, Kimberly J. Ravener, and Jason M. Swergold are in charge of the prosecution. 

 

The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.

 

 



DEFENDANT





AGE





CHARGES





MAXIMUM PENALTY





VINCENT ESPOSITO





 

50





 

RICO Conspiracy; Extortion Conspiracy

 





 

 

 40 years in prison





STEVEN ARENA





60





 

RICO Conspiracy; Extortion Conspiracy

 





 

 

 40 years in prison





FRANK GIOVINCO





50





 

RICO Conspiracy





 

 20 years in prison





FRANK COGNETTA





42





 

RICO Conspiracy; Six Counts of Honest Services Fraud; Two Counts of Bribery in Connection with Employee Benefit Plans





 

 

 

 126 years in prison





VINCENT D’ACUNTO, JR.





49





 

RICO Conspiracy; Extortion Conspiracy

 





 

 

 40 years in prison



 



[1] As the introductory phase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.