Loading...
post-template-default single single-post postid-23455 single-format-standard

Wall Street & the Mafia

Alex Constantine - July 15, 2007

Mob's Bully Market: Probers hear taped threat

By GREG B. SMITH
NY Daily News Staff Writer

With the raw and violent threats of a mob-tainted stock promoter echoing through a stunned hearing room, Congress yesterday got a taste of the mob's infestation of Wall Street.

The tape — of a promoter threatening to kill a reluctant participant in a multimillion-dollar stock scam — was the highlight of the House finance subcommittee hearing on La Cosa Nostra's spreading Wall Street influence.

"I said, 'Do yourself a favor. I'm on my way to Arizona,'" promoter Claudio Iodice warned in the secretly recorded call. "Keep yourself out of the office, because if I even see you, you're [expletive] getting hit."

Members of the subcommittee grilled the FBI, the Securities and Exchange Commission and regulators from the National Association of Securities Dealers on the need for new methods to wage the latest version of the war against the mob.

"The M-O-B has gone back to school and gotten an M.B.A.; the wiseguys are getting smart," declared subcommittee chairman Michael Oxley (R-Ohio), holding up the Sunday Daily News front page: THE MOB ON WALL ST. "They used to play the ponies," said Oxley. "Now they're playing the markets — and investors — for everything they're worth."

As pols sat in silence, the FBI played a June 1997 tape of Iodice talking with Eugene Lombardo, a reputed associate of the Bonanno crime family who was running a big-money pump-and-dump scheme.

Iodice was enraged at the CEO of an Arizona firm who was trying to back out.

"I'm going to Arizona to his family's house," Iodice threatened.

"Unbelievable," replied Lombardo. "When do you want to go?"

"I wanna go to Arizona today. I want to knock on his wife's door, kick it in and ... hold his family hostage," Iodice screamed. "I'm gonna ... knife him. He took away something I like; I'm taking away something he likes."

Iodice still faces charges, while Lombardo has pleaded guilty to securities fraud and is serving an eight-year sentence. Their case is one of nine major mob-on-Wall-Street cases brought in the past three years.

Thomas Fuentes, chief of the FBI's organized crime unit, said law enforcement is particularly worried about the mob's recent use of Internet Web sites and e-mail to hype the stock of dubious and sometimes bogus companies. "Not only can it reach a broader pool of potential victims, but the perpetrators can operate with a certain measure of anonymity," he warned.

Noting that gangsters typically target loosely regulated over-the-counter microcap stocks, regulators cited several new ways to crack down on the mob, including:

Tightening up reporting requirements for companies that trade in the microcap market.

Requiring firms that hire a certain percentage of brokers from houses with disciplinary records to tape-record all of their brokers' sales pitches.

Original Publication Date: 9/14/00

Mob Muscles in on Market (9/10/00)
'Chip' Found Himself Working for Buy or Die Securities' (9/10/00)

2 comments.

  1. I just couldn’t depart your site before suggesting that I extremely enjoyed the standard info a person provide for your visitors? Is going to be back often in order to check up on new posts

  2. I love how NAT and IPV6 are still massively misunderstoodNAT is not a security mechanism Firewalls are Your router still decides what is allowed in with IPV6, and should default to deny incoming connections Only connections you explicitly allow inward should get inWith IPV6 you don’t need NAT, and while the 64/64 split is generally true, there are other setups for subnets out in the wild Not every ISP is gonna give you a /64, some will only give you a single IPV6 address and you’re SOL for anything more As some others have pointed out, getting rid of NAT fixes things for several protocols that have to send data through multiple connections (FTP, SIP/RTP, IRC/DCCP) and makes it so you don’t need to do stupid tricks to find out your public IP address, and trick your router into mapping ports in (STUN protocol)“But NAT hides my internal network structure” – Not really 99 of NAT’ed networks use 19216801 as their gateway thanks to home routers coming with that default Cable Modems & DSL modems have fixed local IPV4 addresses that are pretty easy to guess by ISP, often with default passwords that the user hasn’t got a clue about There have been successful CORS attacks against home routers & cable modems All NAT is giving you is a false sense of security through obscurity

Comments are closed.