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Review Board Re: Proposed Charges Against Local 282 Member Anthony Sainato Date: May 24, 2001

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Review Board Re: Proposed Charges Against Local 282 Member Anthony Sainato Date: May 24, 2001 To: Members of Local 282 Executive Board From: Members of the Independent Review Board Re: Proposed Charges Against Local 282 Member Anthony Sainato Date: May 24, 2001 I. RECOMMENDATION The Independent Review Board ("IRB") refers the below report to the Local 282 Executive Board and recommends the filing charges against Local 282 member Anthony Sainato ("Sainato") for failing to cooperate with the IRB by refusing to answer at least sixty guestions during his sworn examination on May 8, 2001 concerning his association with individuals publicly identified as either members or associates of the Columbo La Cosa Nostra ("LCN") Family. By his actions, it appears that, while an IBT member, Sainato violated Article II, Section 2(a) and Article XIX, Section 7(b)(1) and (2) and Section 14 (i) of the IBT Constitution by obstructing, interfering and unreasonably failing to cooperate with the duties of the IRB as set forth in Paragraph G of the March 14, 1989 Consent Decree in United States v. International Brotherhood of Teamsters, 88 Civ. 4486 (S.D.N.Y.) ("Consent Decree"). II. JURISDICTION Pursuant to Article XIX, Section 14(c) of the IBT Constitution, this disciplinary matter is within the jurisdiction of the Local 282 Executive Board. Paragraph G(e) of the March 14, 1989 Consent Decree in "niter!-Stgj^g. v-^Lnternational Brotherhood of Teamsters, 88 Civ. 4486 (S.D.N.Y.) and Paragraph 1(6) of the Rules and Procedures for Operation of the Independent Review Board ("the IRB Rules") require that within 90 days of the IRB's referral of a matter to an IBT entity, that IBT entity must file with the IRB written findings setting forth the specific action taken and the reasons for that action. Pursuant to Paragraph 1(9) of the IRB Rules, not meeting this deadline may be considered a failure to cooperate with the IRB. III. BACKGROUND A. Anthony Sainato Sainato (born October 13, 1943) was a Local 282 member who last paid his union dues in November 2000. (Ex. 1; Ex. 2 at 5) Local 282 records listed Sainato as a member employed at Max Tec Construction Corporation, 1 Wilson Lane, Bayville, New York. (Ex. 3) As of May 8, 2001, Sainato had neither requested nor received a withdrawal card from Local 282. (Ex. 2 at 5) Sainato became an IBT member in March 1961 when he joined Local 816. In the late 1980's Local 816 merged with Local 868. (Ex. 4 at 3-4) In June 1998, Local 868 merged into Local 917. (Ex. 5 at 3) In 1999 Sainato transferred from Local 917 to Local 282. (Ex. 1) B. Sainato's Criminal History On December 9, 1999, Sainato and his brother, Vincent Sainato, were indicted in the United States Federal Court in the Eastern District of New York on charges of Conspiracy to Impede the IRS in the Collection of Tax Revenue, Corporate Income Tax Evasion, Aiding the Filing of a False Corporate Tax Return and Filing a False Corporate Tax Return. The indictment detailed Anthony and Vincent Sainato's ownership and operation of approximately eleven companies in the construction and trucking industry including Suffolk Alpa, dba Suffolk Distributing, and tax frauds committed by the Sainatos in connection with these companies. (Ex. 6) On April 27, 2000, a jury returned a verdict of guilty on five of the six counts against Sainato. On March 2, 2001, United States District Court Judge Arthur Spatt sentenced Sainato to six years imprisonment. Sainato was scheduled to surrender for the service of his sentence on May 15, 2001. (Ex. 7) On April 25, 2001 the United States Attorney's Office, Eastern District of New York, released an indictment that charged Sainato, Joseph Anemone, Ronald Califano, Frank Campanella, John J. Deross ("Deross"), Dominick Dionisio, Michael T. Donato, Ralph Jude Guiccone, Enrico Locasio, Enrico Monteperto, Christopher Mormando, Alphonse E. Persico ("Persico"), Joseph Anthony Petillo, Paolu Rizzuto, Vito Salerno and Silvio Salome with racketeering, embezzlement, mail fraud and extortion. (Ex. 9) The indictment identified Persico at various times as a captain and acting boss of the Columbo LCN Family. (Ex. 9 at 4) The Permanent Subcommittee on Investigations in their report, Organized Crime: 25 Years After Valachi identified Persico as a Columbo LCN family member. (Ex. 8) The indictment identified Deross as an underboss in the Columbo Family. (Ex. 9 at 4-5) Anemone, Califano, Campanella, Dionisio, Donato, Guccione, Locasio, Monteperto, Mormando, Petillo, Rizzuto and Salome were named as Columbo Family associates. (Ex. 9 at 4) The indictment named Sainato and Campanella as Columbo associates who jointly operated and managed a trucking company, Suffolk Alpa. (Ex. 9 at 6-7) The indictment charged among other things that Sainato and Campanella conspired to embezzle and defraud funds from non-Teamster Local 4 00 by lying about the correct number of employees who worked at the company. The indictment further identified Campanella as a member of the crew of Columbo LCN captain William Cutolo ("Cutolo"). Cutolo who disappeared on May 26, 1999 (Ex. 9 at 5) was a former Local 861 member and principal officer. In a 1990 decision, the Independent Administrator permanently barred Cutolo from the IBT for being a member of organized crime. (Ex. 10 at 32-35) C. Local 282*s Organized Crime History Local 282 represents building material Teamsters in New York, New York. IBT Local 282 was historically dominated by organized crime. (Ex. 11) Its past officials were closely associated with or controlled by members of La Cosa Nostra for decades. For example, John O'Rourke, President of Local 282 from 1931-1965 was closely associated with Luchese Family member John "Johnny Dio" Dioguardi and Anthony "Tony Ducks" Corallo. From 1976- 1984, Local 282's President was John Cody, a close associate of the Gambino Crime Family. (Ex. 11) Cody was convicted of operating Local 282 as a racketeering enterprise through extortion, kickbacks and bribery. (Ex. 12) In 1991, Salvatore Gravano ("Gravano"), an admitted member and the Underboss of the Gambino LCN Family, detailed the organized crime control over Local 282. (Ex. 11) Gravano acknowledged that John Gotti, then the boss of the Gambino Family, appointed him to control Local 282 for the Gambino Family. (Ex. 11) Gravano informed the government about an illegal payoff scheme involving Local 282 and the Gambino Family. Under the scheme, Local 282 officials were directed by Gravano to demand illegal payoffs from contractors who employed Local 282 members. Contractors were forced to pay to ensure union cooperation and to gain special favors from the union such as having no foreman on a job to enforce work rules. (Ex. 11) LCN member Gravano reported that he had a close relationship with Local 282 officers including former Local 282 President Robert Sasso ("Sasso") and former Secretary-Treasurer Michael Carbone ("Carbone"). According to Gravano, Sasso and Carbone were Gambino Crime Family associates. Gravano further advised that when employer payoffs were generated in Local 282, he would receive money from either Sasso or Carbone. If a Local 282 officer or business agent other than Carbone received a payoff, that individual ordinarily shared it with Sasso. (Ex. 11) According to evidence presented at John Gotti's 1992 trial, Gotti personally received more than $1 million a year in racketeering proceeds from Local 282. (Ex. 13) In December 1991, the Investigations Officer charged Sasso and Carbone with knowingly associating with members of organized crime and failing to investigate former Local 282 President Cody's ties to organized crime.1 In August 1992, Sasso and Carbone signed agreements with the Investigation's Officer permanently resigning from the IBT and all of their IBT positions. (Exs. 14 and 15) In July 1993, the current and former Local 282 officials Sasso, Carbone, Michael Bourgal ("Bourgal"), John Probeyahn ("Probeyahn") and Joseph Matarazzo ("Matarazzo"), a former Local 282 business agent, were indicted by a federal grand jury empaneled in the Eastern District of New York for labor racketeering in violation of Title 18 U.S.C. Section 1962 (d). (Ex. 16) Bourgal replaced Sasso in 1992 as Local 282 President following Sasso*s resignation while Probeyahn replaced Carbone as Secretary- Treasurer. All four men entered guilty pleas to racketeering charges. In 199 6, Probeyahn and Bourgal both entered into agreements with the IRB permanently resigning from the IBT to resolve the September 13, 1995 IRB recommended charges that both men engaged in labor racketeering and committed perjury when testifying before the Investigations Officer. (Ex. 17; Ex. 18) Since 1991, 24 Local 282 members have been either permanently barred by the IRB or permanently resigned from the Local pursuant to an agreement with the IRB. Thirteen of these members were barred for knowingly associating with members of organized crime; five members were barred for knowingly associating with a barred member; four members were barred for failing to cooperate with the IRB and two members were barred for extorting In 1982, Cody was convicted of racketeering and sentenced to 17 years imprisonment. (Ex. 12) payments to keep labor peace. (Exs 14,15) (Ex.s 17,18,19) (Ex. 28 through 41) In 1995, Local 282 was placed in government trusteeship as a result of a civil RICO complaint filed against the Local. (Ex. 20) This complaint detailed the Gambino LCN Family's influence over Local 282's Executive Board and their receipt, either through Local 282 officers and members or directly from employers and companies in the industry doing business with Local 282, of proceeds from racketeering acts involving Local 282 officers, employees and members. IV. INVESTIGATIVE FINDINGS A. Sainato's November 4, 1996 IRB Sworn Examination At a November 4, 1996 sworn examination, Sainato testified that he worked with Campanella at Suffolk Distributors ("Suffolk").
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