2003-07-21 -- Ferrante, Michael et al. -- Indictment -- News Release

Three Essex County Men Charged with Running Gambling Business, Loansharking and Theft

NEWARK - Three Essex County men were arrested today and named in an Indictment that charges loansharking, theft and running an illegal gambling business, U.S. Attorney Christopher J. Christie announced.

Mimmo Marzullo, 39, of Montclair, Michael Ferrante, 27, of Verona and Keith Cimera, 44, of North Caldwell, were charged in a 15-count Indictment unsealed today with their arrests, according to Assistant U.S. Attorney Ronald D.Wigler.

Marzullo and Ferrante were arrested at their homes early this morning by Special Agents of the FBI. Cimera turned himself through his attorney to FBI in Newark. Each man is scheduled to make initial appearances today before U.S. Magistrate Judge Susan D. Wigenton. All three defendants are scheduled to be arraigned sometime in July before U.S. District Judge John W. Bissell, to whom the case has been assigned.

According to the Indictment, an individual identified with the initials F.P. was a resident of Verona, and from Feb. 1997 through Aug. 8, 2002, was employed with Ernst & Young, L.L.P. as a financial analyst and billing coordinator. Throughout F.P.'s five years of employment with Ernst & Young, F.P. worked at various times in Ernst & Young's Lyndhurst, N.J., Dallas, and New York City offices. By the end of 2001, F.P. owed a significant gambling debt to Ferrante and Marzullo.

It was part of this conspiracy that in or about December 2001, Ferrante suggested to F.P. that he may want to consider stealing checks from his employer, Ernst & Young, in order to pay off his gambling debt. In December 2001, Ferrante introduced F.P. to Cimera. From approximately December 2001 through March 2002, F.P. stole six asset recovery and/or affiliate billing checks totaling $6,670 from Ernst & Young's Lyndhurst office.

The Indictment also alleges that from approximately April 2002 through June 2002, F.P. copied, altered and submitted for processing to Ernst & Young's national accounting office in Dallas, six falsified invoices totaling $166,212. The invoices were sent to the Dallas office via Federal Express overnight delivery.

The Indictment alleges that from approximately April 2002 through June 2002, F.P. - prior to sending a number of invoices including the six falsified invoices - telephoned and emailed employees of the Dallas office and gave them advance notice that invoices were going to be sent from Ernst & Young's New York office.

It was a further part of the conspiracy that once the invoices were processed in the Dallas office, checks were generated and forwarded via Federal Express to F.P. in the New York office, where they were picked up by Ferrante. Ferrante then returned to New Jersey and arranged to have the checks cashed at Montclair Check Cashing, a store Cimera operated.

The Indictment alleges that F.P. received approximately 10 percent of the proceeds of the six checks cashed at Montclair Cash Checking and the remaining 90 percent was shared by Cimera and Ferrante.

Count One of the Indictment alleges that from about the fall of 1999 through about Autumn 2002, Marzullo and Ferrante conducted an illegal gambling business, which involved five or more persons, was in continuous operation for a period in excess of 30 days, and had a gross revenue of more than $2,000 in any single day. This charge carries a maximum penalty of five years in federal prison and a $250,000 fine.

Count Two alleges that from about August 1999 through about Autumn 2002, Marzullo and Ferrante conspired with each other and others to make extortionate extensions of credit. This charge carries a maximum penalty of 20 years in federal prison and a $250,000 fine.

Count Three through Count Six allege that from Autumn1999 through Autumn 2002, Marzullo and Ferrante made extortionate extensions of credit to four individuals who were only identified in the Indictment their initials. These counts each carry a maximum penalty of 20 years in federal prison and a $250,000 fine.

Count Seven alleges that in the Autumn 1999, Marzullo and Ferrante conspired with each other and others to use extortionate means to collect an extension of credit from an individual with the initials C.L. This charge carries a maximum penalty of 20 years in federal prison and a $250,000 fine.

Count Eight alleges that in about Autumn1999, Marzullo and Ferrante used extortionate means to collect an extension of credit from C.L. This charge carries a maximum penalty of 20 years in federal prison and a $250,000 fine.

Count Nine, the conspiracy count, alleges that from December 2001 through September 2002, Ferrante and Cimera conspired to steal checks in the amount of $166,212.64 from Ernst & Young and transported those stolen checks interstate. This charge carries a maximum penalty of five years in federal prison and a $250,000 fine.

Count 10 through Count 15 allege that from April 23, 2002 through June 11, 2002, Ferrante and Cimera transported the checks referred to in Count Nine amounting to $166,212 across state lines. These counts each carry a maximum penalty of 10 years in federal prison and a $250,000 fine.

If convicted, under U.S. Sentencing Guidelines Judge Bissell will determine the defendants' actual sentences based upon a formula that takes into account the severity and characteristics of the offense, and the defendant's criminal history, if any. Parole has been abolished in the federal system. Under Sentencing Guidelines, defendants who are given custodial terms must serve nearly all that time.

An Indictment is a formal charge made by a grand jury, a body of 16 to 23 citizens. A grand jury may vote an Indictment if 12 or more jurors find probable cause to believe that the defendant has committed the crime or crimes charged.

Despite Indictment, every defendant is presumed innocent, unless and until found guilty beyond a reasonable doubt following a trial at which the defendant has all of the trial rights guaranteed by the U.S. Constitution and federal law.

Christie credited Special Agents of the FBI, under the direction of Special Agent in Charge Louie F. Allen in Newark, with developing the case against the defendants.

The Government is represented by Assistant U.S. Attorney Wigler of the U.S. Attorney's Organized Crime Strike Force Unit in Newark.

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Defense Attorneys:

Marzullo: Robert Tenza, Esq. Roseland

Ferrante: George Abdy, Esq. Totowa

Cimera: Roy Breslow, Esq. Verona