FOR IMMEDIATE RELEASE
Tuesday, March 11, 1998
Contact: Jeff Nelligan, OIG Communications Director
(202) 366-6312
OIG 7-98

THREE INDICTED FOR ALLEGEDLY DEFRAUDING
NEWARK AIRPORT MONORAIL PROJECT

The Department of Transportation’s Office of Inspector General today announced that three men alleged to have ties to the Genovese or Gambino crime families have been charged with extorting nearly $200,000 from contractors and subcontractors, including several who worked on the Newark Airport monorail project.

They also were charged with scheming to defraud the Port Authority of New York and New Jersey by providing false references to the agency which oversees monorail construction.

The arrest last week of the three defendants caps a more-than-four-year racketeering, extortion, and fraud investigation of organized crime influence on construction of the airport monorail.

In addition to the Office of the Inspector General, the investigation has been conducted by the Federal Bureau of Investigation and the U.S. Attorney’s Strike Force Division in Newark.

The 16-count indictment was returned on Feb. 24, 1998 and unsealed by federal prosecutors after the arrests. Two of those charged are alleged to be associated with the Genovese crime family, and the third is said to be a member of the Gambino crime family.

Charged were Rosario Gangi of Brooklyn, N.Y.; John Albert of North Brunswick, N.J.; and Vincent DiModica of Belleville, N.J.

According to the indictment:

• Gangi, Albert, and DiModica are alleged to have committed extortion against Omni-Vanessa, the general contractor building terminal stations for the Newark Airport monorail. On one occasion, prosecutors allege Gangi directed the contractor to reinstate and make additional payments to a sub-contractor that had stopped working on the project.
• On another occasion, it is alleged DiModica demanded to be put on the contractor’s payroll, and caused work-related disruptions when he was removed. As a result of the coercion, the contractor was thereafter forced to put DiModica back on the payroll with back pay.
• Albert also is charged with extortion against two subcontractors who worked on the monorail project, and a demolition contractor who worked on various other unrelated projects in New Jersey and Philadelphia.

###

Briefing Room