Tuesday, May 23, 2006

Mafia heir alleged to have lied about going legit

NEW YORK — A federal indictment on Monday charged John “Junior” Gotti with continuing to commit mob-related crimes even as he claimed that he quit organized crime years ago.

The new accusations come as prosecutors prepare for the July 5 start of Gotti’s third trial on racketeering charges. Juries deadlocked at two previous trials in the last year.

The new indictment alleges that Gotti tampered with a witness last year and used money earned illegally through the Gambino crime family to create and operate holding companies used to buy real estate and collect rents.

Gotti’s lawyer, Charles Carnesi, did not immediately respond to calls seeking comment.

Since the end of Gotti’s last trial, prosecutors have issued grand jury subpoenas to Gotti’s relatives and suspected Gambino crime family members and associates.

The indictment said Gotti used money made through racketeering to help establish and operate a brokerage company that received rent proceeds from businesses.

It said Gotti participated in a conspiracy last summer to persuade a witness to testify falsely at a trial involving members of another organized crime family.

The new indictment challenges the defense legal theory at Gotti’s last trial that their client had quit the mob by 1999, when he pleaded guilty in another racketeering case.

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