Illegal Enterprise Extends Beyond Rockland County; “Operation Double Down” Strikes Major Blow Against Organized Crime In Hudson Valley

Rockland County District Attorney Thomas P. Zugibe and Rockland County Sheriff James F. Kralik today announced the arrest of three individuals on charges stemming from the operation of an illegal gambling, sports betting and loan sharking enterprise closely controlled by organized crime.

The highly-sophisticated operation in Rockland County and elsewhere booked hundreds of thousands of dollars in wagers each month on professional basketball, football, baseball, hockey and other sporting events.

Charged are:

• Frank John Fea (DOB 10/13/39) 72 Lilline Lane, Upper Saddle River, New Jersey
• Alfred Joseph Fea (DOB 11/07/65) One Wilson Road, Middletown, New York
• Tracey Fea a/k/a Tracey Kosierowski (DOB 08/31/69) One Wilson Road, Middletown, New York

The charges that each may face can include:

• Criminal Usury in the First Degree, a class “C” Felony
• Money Laundering in the Fourth Degree, a class “E” Felony
• Promoting Gambling in the First Degree, a class “E” Felony
• Possessing Gambling Records in the First Degree, a Class “E” Felony
• Conspiracy in the Fourth Degree, a class “E” Felony
• Conspiracy in the Fifth Degree, a class “A” Misdemeanor

District Attorney Zugibe said, “Illegal gambling has always been a moneymaker for organized crime because of the huge profits it generates. These illicit proceeds often fund other criminal activity, such as drug trafficking, prostitution, auto theft and insurance fraud. We believe these arrests will greatly deter those criminal activities in Rockland County and across the Tri-State area.”

The investigation leading to the arrests began in late 2008 with information developed by the Rockland County Intelligence Center. As the probe into illegal sports betting and loan sharking progressed, it extended beyond Rockland into neighboring counties. The New York State Police, the New York State Organized Crime Task Force and the Bergen County Prosecutors Office joined the investigation, which led to the three arrests.

“Operation Double Down” included 12 search warrants executed in five counties including Rockland, Orange, Ulster, Bronx and Bergen. Zugibe stressed, “These arrests represent the tip of the iceberg. This investigation is just getting started and more arrests will be made.”

It is alleged that the defendants utilized a network of individuals and the Internet to handle multiple wagers each month that generated hundreds of thousands of dollars in monthly gross revenue. The illegal bets were placed on a variety of professional sporting events, including Major League Baseball, NBA, NFL and NHL games.

The enterprise relied on modern technology to generate its criminal proceeds, including cell phones and gambling Web sites, which served as computerized wire rooms through which the operation conducted much of its illegal gaming activity.

The defendants are also accused of engaging in “loansharking,” charging exorbitant and illegal interest rates on unpaid gaming debts owed to the organization. This practice of charging usurious interest made it nearly impossible for many individuals in debt to the organization to pay their way out of the debt.

Sheriff Kralik said, “There is no such thing as a friendly wager when organized crime is involved. These three defendants, and anyone who takes part in sports betting and other illegal gambling, have blood on their hands.”

Said Zugibe, “While this type of criminal activity is portrayed as ‘cool’ and ‘glamorous’ in ‘The Sopranos,’ in the real world, it often leads to financial ruin and jail. These kinds of operations are at the root of many crimes that corrupt the integrity of our communities and undermine public safety.”

On June 9th, early morning raids on 11 locations in Rockland, Orange, Ulster, Bergen and Bronx counties led to the arrests of the three defendants. Seized in the raids were six vehicles, including two Mercedes-Benz, one Lincoln Navigator and a 2007 Bentley. The raids also yielded 18 weapons, including automatic handguns, several high-powered rifles and a shotgun. Detectives also confiscated safes, several desktop and laptop computers, electronic poker machines, gambling records and $376,081 in cash.

Later in the day, the 12th search warrant was executed on a safe deposit box located in a bank in Nanuet, NY.

Assisting in the operation were the Rockland County Intelligence Center, the New York State Police, the Rockland County Sheriff’s Department, the Rockland County District Attorney’s Office, the Bergen County Prosecutor’s Office, the Bronx District Attorney’s Office, the Town of Haverstraw Police Department, the Clarkstown Police Department, the Spring Valley Police Department, the Upper Saddle River, New Jersey Police Department, the FBI, U.S. Customs and Border Protection, U.S. Secret Service and the Orange County Sheriff’s Office.

Frank Fea was taken into custody at his $2.99 million luxury estate in Upper Saddle River, New Jersey. He is being held as a fugitive from Justice in Bergen County. Alfred and Tracey Fea were arrested at their home in Middletown. Bail was set and the couple was remanded to the Rockland County jail. Both defendants are due to return to court on June 14th, 2010.

Each of the defendants face up to fifteen years in state prison.

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