A Manhattan grand jury has indicted a couple of organized crime figures on charges they shook down roofing contractors in a labor racketeering scheme:
According to the D.A.'s office:
The indictment charges that the defendants were engaged in a criminal enterprise, denominated the "LOCAL 8 GROUP," for the purpose of making money for the Genovese Organized Crime Family and themselves by extorting cash bribes from roofing contractors who the corrupt union officials threatened with overly zealous enforcement of LOCAL 8's collective bargaining agreement.
The cash bribes paid to the union officials averaged between $1,500 and $2,000 per month, per contractor. Some of the contractors paid per job, while others paid what amounted to a "retainer" to cover all of their jobs.
Contractors who made the cash payments gained a competitive advantage because LOCAL 8 officials allowed them to use less expensive non-union roofers and labor saving equipment like power tools on their projects, while non payers could not.
The defendants also interrupted work on the projects of contractors who did not capitulate to their scheme and "loaded them up" with more costly union roofers on threat of shutting down their projects.
Two of the figures indicted were John (Johnny Sausage) Barbato, a Genovese family capo (according to the D.A.) and Michael Verdi, an associate and one of Barbato's drivers. Another, Anthony (Tony Muscles) Guardino, is business manager for the union involved, Local 8.