TVs, bikes, toys, even baby food were among the stock in trade of the South Phila. operation, according to a U.S. indictment.

December 17, 1999

By George Anastasia
Philadelphia INQUIRER STAFF WRITER

To the consumer it's known as "hot stuff."

To the distributor it's called "swag."

But yesterday, federal investigators targeting reputed mob boss Joseph "Skinny Joey" Merlino and four of his top associates attached a different name to the truckloads of televisions, bicycles, baby formula, women's sweatsuits, toy trains and electrical ceiling fans that were allegedly the stock in trade of a South Philadelphia stolen property ring.

The feds called it "evidence."

The U.S. Attorney's Office announced the arrest of Merlino and four other reputed mobsters yesterday morning on racketeering and conspiracy charges in connection with what they allege was a million-dollar stolen property ring operating in South Philadelphia.

The allegations were contained in a 12-count indictment that also included the cocaine distribution and conspiracy charges for which Merlino, 37, was indicted and jailed in June and for which he was scheduled to be tried on Jan. 5. Yesterday's superceding indictment will probably result in the postponement of that trial date, authorities said.

In addition, nine other defendants were charged in a separate indictment with the theft of nearly $1.3 million in merchandise from two South Philadelphia storage facilities.

Part of that "swag," more than $400,000 in merchandise, ended up in the hands of Merlino and his associates, authorities charged. The rest was sold as "hot stuff" to other illegal distributors or to consumers.

U.S. Attorney Michael R. Stiles said the indictments were part of an ongoing investigation into organized crime.

"We're determined to make it very costly to operate their criminal enterprises," Stiles said at a news conference called to announce the arrests.

"We haven't stopped. We are continuing. Others charges could follow."

Charged along with Merlino in the racketeering case were reputed mob soldier Frank Gambino, 68, and reputed mob associates Ralph "Ralphie Head" Abbruzzi, 50, Steven "Snitch" Frangipani, 37, and Anthony Accardo, 39.

Much of the evidence gathered in that case was based on information provided by Ron Previte, a former mob "capo" or captain who wore a wire and taped hundreds of conversations for the FBI for a two-year period beginning in 1997.

Previte's tapes and undercover work resulted in the arrests of Merlino, former mob boss Ralph Natale and nine others on drug charges in June. Natale, 67, has since begun cooperating with federal authorities. The information he is providing is expected to result in yet another superseding indictment sometime next year.

Neither Stiles nor Robert Courtney, chief of the Organized Crime Division of the U.S. Attorney's Office, would comment on specific evidence or the role Previte played in the stolen property operation.

The indictment, however, indicates that Previte, 57, received shipments of both baby food formula and bicycles in July 1998 and that Merlino and others offered to sell Previte shipments of other stolen goods that they were expecting, including frozen shrimp, dresses, cases of cigarettes, cases of vodka and "a half-million dollars of stolen United States nickels."

Stiles said authorities did not know whether any of the stolen bicycles were included in the toys and gifts Merlino provided for dozens of children at his annual Christmas dinners for the homeless in South Philadelphia. Other sources, however, said they were not.

Authorities charge that the stolen property ring operated between December 1996 and June of this year.

During that period, the indictment alleges, Merlino and his associates received 50 stolen Sony television sets; 75 Samsung combination television/VCR sets; 175 cartons of Bachman electric toy trains; 1,000 electric ceiling fans; 13,000 sets of women's sweatsuits; 3,618 cases of baby food formula; and 570 Raleigh bicyles.

The stolen goods were parts of shipments heisted from Ameriport and C.S.X. Frieght Lines, two storage facilities on South Delaware Avenue, authorities said.

Those charged with the thefts and indicted in a separate case yesterday were Robert Miller Sr., Robert Miller Jr., Wesley DiDomenicis, John DiDomenicis, Frank Buono, Vincent Romeo, Raymond Russo, Christopher Aleardi and John Berry.

Merlino, who is already being held without bail on the drug charges, was served notice of his arrest in prison. The other defendants were arrested in a series of raids early yesterday morning and appeared at bail hearings in federal court yesterday afternoon. Most were released on bail.

While authorities declined to provide specific details about the investigation, an FBI affidavit submitted nearly a year ago as part of a request for court authorization to tap the phones of Merlino and several of his top associates provides an outline of the probe.

According to the affidavit signed by FBI agent Ralph J. Saturno, federal authorities first learned of the mob's involvement in the stolen property ring in the summer of 1997 when Previte was approached by Merlino, Abbruzzi and Frangipani about buying electric ceiling fans.

Some of the fans, part of a stolen shipment that had been designated for a Builders Square store in Cherry Hill, were being sold by Abbruzzi and Frangipani from a "blue van located near the intersection of Tenth and Carpenter Streets," according to the affidavit.

The fans, which retailed for from $29 to $69 apiece, were being sold for $20. Previte, according to the affidavit, offered to take 100. Merlino said that because he was "a friend of his" he would only have to pay $15 for each fan.

Over the course of the next several months, according to the Saturno affidavit, Previte had several other discussions with Merlino, Abruzzi, Frangipani and other Merlino associates about more stolen property they were expecting.

These included a discusssion in September 1997 at the Cheerleaders Bar in South Philadelphia where Previte was told by Abruzzi that he had 13,000 "Carolina" women's sweatsuits valued at $50 to $60 "that he was looking to move" for $5 apiece, according to Saturno.

Previte eventually received three of the sweatsuits as samples. The affidavit does not indicate if he ever purchased more.

The affidavit also indicates that Previte discussed shipments of stolen televisions during a meeting in October 1997 at a Vegas Night held at South Philadelphia caterer's hall and again during a Christmas party in December at Malone's Bar at 18th and Ritner Streets.

Malone's is run by top Merlino associate Steve Mazzone.

Finally, in July 1998, the affidavit says, Merlino and Abbruzzi told Previte they were about to receive a shipment of bicycles and a shipment of baby food formula.

"Merlino and Abbruzzi further described the loads as 2,456 cases of Enfamil and 570 bicycles valued at $280 to $290" apiece.

On July 16, 1998, according to the affidavit, Previte was taken to a warehouse on Master and Jefferson Streets where he was shown a stolen trailer containing the cases of formula and the bicycles.

Previte recorded the conversation he had with Merlino, Abbruzzi and Accardo at the warehouse, according to the affidavit.

Previte, using a truck being driven by undercover FBI and Pennsylvania State Police investigators, took the baby formula and some of the bicycles on July 16 and returned on July 17 to take the rest of the bicycles, according to sources familiar with the investigation.

The baby formula, for health and safety reasons, was eventually destroyed, federal authorities said yesterday. The bicycles are now at a government storage site.

Merlino, according to the affidavit, told Previte on July 17 that he expected "three more loads" of stolen bicycles the following week and "then they were going to lay low."

Earlier that summer, according to the indictment, Previte had had several other conversations with Merlino, most of which were believed to have been secretly recorded, in which Merlino offered to provide shipments of stolen cases of vodka, frozen shrimp and "150,000 cases of stolen cigarettes."

And earlier this year, according to the indictment, Abbruzzi told Previte he would be able to provide him with "three cargo trailers of stolen goods."

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