MARY JO WHITE
United States Attorney for the
Southern District of New York

By: Allan N. Taffet (AT-5181)
Assistant United States Attorney
100 Church Street, 19th Floor
New York, New York 10007
Tel. No.: (212) 385-6367

UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF NEW YORK

UNITED STATES OF AMERICA and ROBERT B. REICH, Secretary of the United States Department of Labor,

MASON TENDERS DISTRICT COUNCIL OF GREATER NEW YORK, et al.,

ALPHONSE D'ARCO hereby declares, pursuant to 28 U.S.C. § 1746, under penalty of perjury, as follows:

1. In 1982, I was made a member of the Luchese Organized Crime Family (the "Luchese Family"). On September 21, 1991, I voluntarily began cooperating with the Federal Government. At that time, I was the Acting Boss of the Luchese Family. From approximately 1988 until January 1991, I was a capo of the Luchese Family. As a made member, a capo and Acting Boss of the Luchese Family, I often spoke with members of the other organized crime families known as ''La Cosa Nostra" ("LCN"), or the Mafia.

Through my associations with members of the LCN, I knew that the Genovese, Luchese and Gambino Organized Crime Families exercised considerable influence over the affairs of the Mason Tenders District Council of Greater New York ("District Council") and several of its constituent Locals (the "Locals"). The District Council and its constituent Locals are affiliated with the Laborers' International Union of North America ("LIUNA").

1. I was born July 28, 1932, in Brooklyn, New York. Shortly after I began cooperating with the Federal Government, I began living under the protection of either the Federal Bureau of Investigation or the United States Marshal's Service.

2. I have provided information to the Federal Bureau of Investigation, the United States Department of Justice, and other law enforcement agencies. I also have given testimony against people who are high ranking members of the LCN. For this reason, I am of the opinion that if my current whereabouts were revealed, I and my family would be in danger of being killed or seriously harmed. I know this to be true because on September 18, 1991, Frank Lastorino and Anthony Baratta, two capos in the Luchese Family, Mike DeSantis, a soldier in the Luchese Family and others plotted to kill me in the Kimberly Hotel in Manhattan.

Having failed in their attempt to kill me, they threatened to kill members of my immediate family.

3. Throughout my entire life, I have associated with persons who were either members or associates of a criminal organization known to me as "La Cosa Nostra." "La Cosa Nostra" is a phrase in the Italian language that translates into the English language as "our thing" or "this thing of ours." As a child, I became aware of the existence of the LCN and I routinely associated with high-ranking LCN bosses of various LCN families who resided in or visited my neighborhood in Brooklyn, New York.

4. The LCN is a nationwide criminal organization that is divided into units, each of which is called a "family" or, as it is known in the Italian language, ""il borgata." In 1982, I became a member of the Luchese Family of the LCN and ultimately rose to high levels in that Family. An LCN family is named after the city in which it is located or after the name of the boss or a former boss. The Luchese Family is located in New York, New York and is named after Gaetano Luchese. In 1982, when I became a member of the Luchese Family, Anthony "Tony Ducks" Corallo was the boss.

5. Each LCN family is governed by a "boss," who oversees all of the activities of the family. The boss is assisted in overseeing the family by an underboss. and a

"consigliere" or counselor. The family is divided into crews of members who are known as "soldiers" or "made men". "Made" members of the LCN are also referred to as being "straightened out". The activities of each crew are supervised by an individual referred to alternatively as a "captain", "caporegime", or "capodecina" (hereafter referred to as "capos"). "Made" members have "associates" who assist the "made" members in conducting their criminal activity.

6. In 1982, when I became a "made" member of the Luchese Family, I was assigned to the crew of the late Paul Vario. In 1988, Vic Amuso, who became boss of the Luchese Family after the imprisonment of Anthony Corallo, appointed me to be the caporegome of my crew after Paul Vario's death. On January 9, 1991, Vic Amuso named me the acting boss of the Luchese Family, while he and Anthony "Gaspipe" Casso, the underboss, were fugitives from a federal indictment, or "on the lam".

7. The national affairs of the LCN are governed by a "Commission" whose members include the bosses of the major LCN families. In 1991, when I began to cooperate with the Federal Government, the bosses of the Genovese, Luchese, Gambino, Colombo and Chicago Organized Crime Families were voting members of the Commission. The Commission's functions include: (1) resolving disputes among or between families; (2) recognizing and approving

the selection of bosses by the various families; and (3) establishing rules for the activities of the families.

8. LCN families exist in major cities throughout the United States. The following are the LCN families in New York that have influence over the District Council and its Locals:

a. The Gambino Organized Crime Family (the "Gambino Family"), which is headquartered in New York, New York. The boss of the Gambino Family is one of the four New York bosses who is a voting member of the Commission.

b. The Genovese Organized Crime Family (the "Genovese Family"), which is headquartered in New York, New York, and operates in various locations throughout the United States. The Genovese Family has always had an extremely close relationship with the Chicago Family. The Genovese Family is the only LCN family I have ever known to have a member designated as "il messaggero," a messenger between the Genovese and Chicago Families. The Genovese Family is named after Vito Genovese. I have always considered the Genovese Family to be the most powerful LCN family in the United States. Vincent "Chin" Gigante has been the boss of the Genovese Family for years even though others have been held out to be the boss.

c. The Luchese Family, of which I was a member, at one time exercised influence over most of the labor

unions in New York. Gradually, control of various unions was ceded to other families, particularly to the Gambino Family. When Thomas Luchese, also known as "Three Finger Brown," or "Tommy Brown," was the boss of the Luchese Family, the Luchese Family was feared because many of its members were "shooters."

9. During the time I was a member of the Luchese Family, the family made money through a variety of illegal activities including gambling, loansharking, and dealing in stolen property. One of our most; profitable activities, however, involved the corruption of labor unions. We obtained money from corrupt labor unions through activities such as "shaking down" businesses that employed members of the unions, "ghost payrolling" family members, and corrupting employee pension funds. The Luchese Family made money from corrupt officials of the following unions: the International Brotherhood of Teamsters, the Carpenters Union, "the Bricklayers Union, the Painters Union, the Allied Guard Union, the Ornamental Iron Workers Union. the Newspaper Drivers Union, the Mason Tenders and LIUNA. In part by exercising influence over these labor unions, the Luchese Family was able to engage in illegal activities at John F. Kennedy International Airport in Queens, New York. Because the Luchese Family exercised influence over various unions, we were able to ensure that members and associates of the

Luchese Family were paid by these unions in several ways including: placing a member in a legitimate job in the union; placing a member in an official position in the union; or having a member in a "ghost payroll," or "no-show" job on a construction site.

10. The LCN tries to control labor unions for a variety of reasons. Principally, control over labor unions enables an LCN family to obtain a large amount of revenue through both legitimate and illegitimate activities. Controlling a labor union also allows an LCN family a means of entering into legitimate commerce either by guaranteeing labor union jobs for family members and associates, or by providing a competitive advantage to businesses that are influenced by the LCN. If the LCN has influence over a labor union, it can allow an LCN-controlled business to operate without a union contract, while forcing unions to enforce the union contract against non-LCN controlled businesses. Corruption of labor unions is important to the continued strength of the LCN.

11. Because I was significantly involved in the affairs of the Luchese Family for more than 30 years, I know that the Luchese Family exercised influence over three Mason Tenders' Locals in the New York City area: Locals 46, 48, and 66. At one time, the crew of which I was capo exercised control over Local

47. In or around 1970, however, Paul Vario, who had been a capo of the crew that once exercised control over Local 47, sold his influence over Local 47 to an individual named "Cicco," a "made" member of the Genovese Family, for $15,000.00. Vario should not have done this because influence over Local 47 belonged to the Luchese Family and not to Vario.

1. As a high ranking member of the Luchese Family, I often met with high-ranking members of other LCN Families. In 1988, I was introduced to Barney Bellomo, who was then a capo in the Genovese Family. In the summer of 1990, Bellomo was formally introduced to me, and identified as the Acting Boss of the Genovese Family. At the same time, Jimmy Ida, was formally introduced to me, and identified as the Acting Consiglieri. Later, Mickey Generoso was formally introduced, to me and identified as the Acting Underboss of the Genovese Family.

2. The Genovese Family exercised influence over the Mason Tenders District Council and Locals 13, 37, 51 and 59 through an individual named Jimmy Messera, also known as "Jimmy from Elizabeth Street". Messera was introduced to me and identified as a capo in the Genovese Family

3. The Genovese Family also exerted influence over the Carpenters Union in New York City. Bellomo exerted influence

over the operations of the Carpenters Union at Jacob Javits Convention Center for the Genovese Family. Bellomo's representative at the Javits Center was Ralph Coppola, a "made" member of the Genovese Family who had a position with the Carpenters Union at the Javits Center.

4. In 1990, I organized a construction panel for the Luchese Family. The purposes of establishing the construction panel were to coordinate the Luchese Family's control over construction unions, including the Mason Tenders, the Carpenters Union and other unions involved in the construction industry; to ensure that construction companies that the Luchese Family exercised influence over obtained jobs; to facilitate communication between the Luchese Family and other LCN families regarding control over labor unions and construction jobs; and to frustrate law enforcement efforts to investigate corruption in the construction industry.

5. When the panel was formed, I appointed Dominick Truscello, a Luchese Family capo, to serve as its head. I also assigned Steve Crea, a Luchese Family capo, and Danny Cutaia, a member of my crew, to assist Truscello. In the summer of 1991, Amuso and Casso appointed Richie Pagliarullo, another Luchese Family capo. to replace Truscello as the head of the panel.

6. Each of the New York LCN Families designated a representative to the Luchese Family construction panel. In 1990, at a bar and restaurant near the Amsterdam Billiard Club on Amsterdam Avenue in Manhattan, Bellomo and Jimmy Ida, Acting Consiglieri of the Genovese Family, advised me that Ralph Coppola would be the Genovese Family's representative to the Luchese Family construction panel. Among Coppola's functions as the Genovese Family's representative would be to facilitate communication between the Genovese Family and the Luchese Family.

7. For instance, during the summer of 1991, ""Quiet Dom" Cirillo sent a message concerning a labor racketeering deal through Coppola, the Genovese Family's representative to the Luchese Family construction panel, to Truscello and Crea. The deal concerned a contractor who was "with" the Genovese Family, but wanted to use Local 48, which has long been controlled by the Luchese Family, on a certain job. Normally the contractor would employ Local 59 members, because Local 59 is controlled by the Genovese Family. However, for this construction job, the contractor got a "better rate" by using Local 48. In return for allowing the contractor to use Local 48 employees, the contractor would make a $100,000 payoff, which would be split equally between the Genovese and Luchese Families. The contractor was to make an additional $15,000 payment, which was later reduced to

$10,000, to Teddy Persico, a Colombo Family capo. The payment to Persico was for a previous debt owed by the contractor to the Colombo Family. After learning of the deal from Coppola, Truscello and Crea told me of the deal in order to "put it on record." Thereafter, the deal was complete.

8. Johnny Gammarano, a "made" member of the Gambino Family, represented the interests of all of the Gambino controlled Locals to the Luchese Family construction panel.

1. Before his conviction in 1989, Peter "Butch" Vario, a Luchese Family associate, who was also an officer of Local 46 and the nephew of Paul Vario, exercised influence over Local 46 for the Luchese Family. Butch Vario reported to Joseph "Pippeneddu" Frangipane, a made member of the Luchese Family.

2. In 1989, after the convictions of Pippeneddu and Butch Vario, LIUNA put Local 46 into trusteeship. Following the trusteeship, the Luchese Family assigned Peter "Rugsy" Vario, a soldier, to oversee the Luchese Family's interest over Local 46. During this period of time, I learned that certain members and associates of the Genovese Family, led by Edward "Eddie" DioVisalvo, were representing themselves as officials of Local 46. As officials of Local 46, these Genovese Family associates

were exercising influence over Local 46, even though Local 46 had long been controlled by the Luchese Family.

3. Because of the dispute over whether the Luchese or Genovese Families were to control Local 46, Dominick Truscello, the head of the Luchese Family construction panel, had many "sitdowns" with James Messera. Truscello would report to me after the "sitdowns" between he and Messera. During those "sitdowns" Truscello and Messera discussed the Genovese Family's attempt to wrest control of Local 46 from the Luchese Family by installing "Eddie" into a union position.

4. At some point in late 1989 or early 1990, the situation with Eddie and his associates became intolerable to the Luchese Family. As a result, I asked Vic Amuso and Anthony Casso for instructions in handling this matter. Casso told me to have "Eddie beaten. Following these instructions, "Rugsy" Vario and Anthony Grada, a Luchese Family associate, beat Eddie with axe handles. Shortly after this incident, in early 1990, Peter "Rugsy" Vario and I had a "sitdown"" with representatives of the Acting Genovese Family, including Jimmy Ida, consigliere of the Genovese Family; Mickey Generoso, a capo of the Genovese Family; and Jimmy Messera. The sitdown occurred at Little Charley's Clam Bar and Scungilli House on Kenmare Street in New York.

5. I told Ida, Generoso and Messera that the Luchese Family wanted Eddie and the other Genovese associates to be removed from their official positions in Local 46 because the Luchese Family controlled that Local. I also told them that the Luchese Family would be installing Joseph Luciano, "Rugsy" Vario's relative, as president of Local 46. In response, Messera implied that Luciano was a "rat, in other words, someone who was weak and if pressured could become an informant to law enforcement officials. When I confronted Messera and asked if he was indeed calling Luciano a "rat," Messera backed-down. I left "Rugsy" Vario to work out the details with Messera. Soon thereafter, Joseph Luciano, a Luchese Family associate, was installed as president of Local 46 and "Eddie" was removed.

1. Joey Giampa, a capo in the Luchese family, exercises influence over Local 48. The Luchese Family's influence over Local 48 is carried out by Michael Capra, a union officer at Local 48 and a soldier in Giampa's crew. In 1990 & 1991 Michael Capra and his father Joe, also a Luchese Family soldier, were responsible for making a $1,100.00 per week payment to the Luchese Family. In 1990 and 1991, Joey Giampa made the payment to me directly or made the payment to Truscello who gave the payment to me. I gave the money to Vic Amuso and Anthony Casso.

2. I keep records of the payments. A copy of one of the records in my handwriting is attached to this declaration as Exhibit "A". Payment from Giampa is reflected on this document as item No. 11 and reflects a $3,300.00 payment made on March 14, 1991 for three weeks of payments from the Mike and Joe Capra. A copy of another record in my handwriting is attached to this declaration as Exhibit "3." Payment from Giampa is reflected on this document as item number 6 and shows a $4,400 payment made on December 29, 1990, for four weeks of payments from Mike and Joe Capra.

3. The Luchese family also exercises influence over Local 66. Prior to Paul Vario's death in 1988. his Luchese Family crew exercised control over Local 66 through Luchese Family soldiers, Peter "Jocko" Vario and Michael "Big Mike" LaBarbera, Jr.. Both Peter "Jocko" Vario and Michael "Big Mike" LaBarbera, Jr. served with me in Paul Vario's crew. During the time Paul Vario supervised Local 66 for the Luchese Family, "Jocko" Vario and "Big Mike" LaBarbera paid $10,000 per year to the Luchese Family from Local 66. After Anthony Corallo's imprisonment in 1986, and Paul Vario's death in 1988, Jocko Vario and "Big Mike" LaBarbera were required to kick back 50% of the money they received from union-related illegal activities. The

payments were given to Rugsy Vario, who gave them to Truscello who gave them to me.

4. After Vic Amuso and Anthony Casso "went on the lam" and I became the acting boss, Dominick Truscello, as head of the Luchese Family's construction panel, supervised the Luchese Family's interests at Local 66. In 1990, following the convictions of "Jocko" Vario, "Big Mike" LaBarbera, Jr., and James G. Abbattiello for labor racketeering, Gerald "Gerry" Losquadro, a Luchese Family associate continued to oversee the Luchese Family's interests at Local 66. Although Gerry continued to make payments to the Luchese Family, the payments were insufficient. In addition, Gerry was avoiding other of the Luchese Family's demands. Given Gerry's behavior, I instructed Luchese Family soldier, Peter "Rugsy" Vario, Luchese family associates Mikey Corcione and ""Bonesy" Corcione, to accompany Dominick Truscello to a meeting with Gerry. At the meeting they were to instruct Gerry to respect all of the Luchese Family's demands, including placing individuals the Luchese Family had selected in union officer positions and kicking back 50% of the profits they were receiving from extortion and other union-related illegal activity to the Luchese Family.

5. Attached to this declaration as Exhibit "B" is another document that I prepared. The third notation "3000

L.I.P.V." on Exhibit "B" reflects a $3,000 payment from the lawyer and/or accountant that represented Local 66. In 1990, payment was given to Peter "Jocko" Vario, who gave it to Peter "Rugsy" Vario who gave it to me. The twenty-eighth notation "4,000 L.I. const" on Exhibit B represents $4,000 owed to the Luchese Family from the lawyer and/or the accountant for the Local 66 "kick back" scheme. The twenty-ninth notation "8,900 L.I. P.V. 6/24" represents a $8,900 payment collected by Peter "Jocko" Vario from the lawyer and/or accountant from Local 66. Jocko Vario gave these payments to Peter "Rugsy" Vario. I received this payment from Peter "Rugsy" Vario on June 24, 1991. Exhibit "A" reflects another payment in the notation "5) 2/12 60.00 DM (L. IL)." That notation means that on February 12, 1991, Dominick Truscello made a payment to me in the amount of $6,000 from labor peace and other schemes from Local 66. Because LaBarbara and "Jocko" Vario were incarcerated at that time, the collection would have been made from Gerry.

1. I know from my involvement with the LCN and from having to deal with the Genovese Family concerning Mason Tenders' matters that Local 13 was run by a man named Basil Cervone who the followed the lead of the Genovese Family in directing the affairs of this local. Basil Cervone is a Genovese Family associate.

2. Local 51 is a union whose members are involved in construction projects at Kennedy Airport. Jimmy Messera exercised influence over Local 51 through a man named Anthony "Scal" Sclafania, a long time associate of the Genovese Family and a delegate for Local 51. The Genovese Family uses its influence over Local 51 to shakedown contractors engaged in construction projects at the airport.

3. Dominick Truscello told me of an individual named Danny Pagano, who is a Genovese Family associate. Danny Pagano exercises influence over Local 59 for the Genovese Family. Danny Pagano also represents the interests of HRH Construction, a company that is "with" the Genovese Family. The Luchese Family dealt with Danny Pagano concerning business with Local 59 and HRH Construction.

Executed: October 5 , 1994

Signature

ALPHONSE D'ARCO