New York AG Charges 17 With Running Illegal Gambling, Loansharking Operation

New York Attorney General Letitia James unsealed an indictment on Tuesday charging 17 mob-connected people with illegal sports betting. (Image: Michael Santiago/McClatchy-Tribune)

The New York State Attorney General’s office has charged 17 individuals with running a mob-affiliated gambling and loansharking network, one that allegedly operated on Staten Island and in New Jersey.

Court documents accuse 58-year-old Edward Laforte with managing ubet1288, an illegal sports betting website that took in $22.7 million in wagers over two years.

Authorities Say Defendants Loaned Money to Losing Gamblers

According to an indictment unsealed on Tuesday, the site was overseen by John Laforte, Edward’s brother. Over 70 bettors were said to have made wagers on the site between September 2022 and March 2023. Prosecutors allege that several co-defendants in the case were “sheetholders” who managed bets and collecting debts. 

Court submissions allege that ledgers seized by authorities showed that gamblers who used the site sometimes owed as much as $20,000. When the bettors would fall into debt and found themselves unable to pay, Edward Laforte, along with Frederick Falcone Sr., would offer them loans bankrolled by members of the crew at high interest rates. The proceeds from the loans would then be used to pay out winners.

Several of the co-defendants are alleged to be members of the Gambino organized crime family, one of the famed “Five Families” of La Cosa Nostra. 

“Illegal gambling and loan sharking schemes are some of the oldest rackets in the mob’s playbook,” New York Attorney General Letitia James said in a statement. “While organized crime may still be active in New York, today we are putting several Gambino family members out of business. These criminal enterprises took tens of millions of dollars from New Yorkers and trapped many in dangerous amounts of debt.”

Gaming Officials: Stick With Regulated Gambling Options

New York State Gaming Commission Chairman Brian O’Dwyer made a point of contrasting illegal sports betting operations with the regulated and licensed operations that are now legal in the state of New York.

“As we have seen for over a century and once again here, illegal bookmaking is often intertwined with organized crime,” O’Dwyer said in a statement. “This is why we have regulated gaming with strong safeguards, player protections, and revenue to make our communities better. With the numerous legal gambling opportunities available in our state, there is no legitimate reason to wager with offshore operations and blindly line the pockets of alleged gangsters.”

Each of the defendants was arraigned at the Staten Island Courthouse on Tuesday in front of Justice Lisa Grey. The various co-defendants were represented by what SILive.com called “an army of defense attorneys.” Many made arguments downplaying the severity of the alleged crimes.

“With the city rampant with violence, the Attorney General’s office devotes its resources to taking down non-violent individuals,” attorney Mark Fonte said in court while representing Frederick Falcone Sr., a retired NYPD officer. “There isn’t even a hint of violence in any of these charges. New Yorkers deserve better.”

Richmond County District Attorney Michael McMahon disputed that characterization.

“Illegal gambling is by no means a victimless crime and these 17 defendants, including nearly a dozen Staten Islanders, stand accused of raking in tens of millions of dollars from our neighbors while engaging in brazen loansharking and mortgage fraud,” McMahon said in a statement. 

The case was adjourned to August 13 following Tuesday’s arraignment. 

NY online casinos remain illegal at the time of writing.