Carting Industry
Since 1957, when New York City opened commercial carting, or garbage hauling routes to private companies, New York City carters and their worker's unions have been controlled, for the most part, by the La Cosa Nostra (LCN). In recent years, the 250 carting companies in New York City have charged customers approximately $1.5 billion in annual fees. It has been estimated that $100 million of these fees are funneled to the LCN. A study by the Rand Corporation in the 1980s estimated that the LCN carting monopoly on Long Island was costing commercial customers an additional 50 percent, and residential customers an additional 15 percent for carting services.
In 1998, Colombo LCN family boss Andrew Russo and several members and associates of the Colombo LCN family pled guilty to racketeering charges that resulted from an FBI investigation of carting companies on Long Island. The investigation determined that these men, through several corporations they controlled, operated a carting partnership in one area of Long Island without any meaningful competition. When challenged, they used arson, extortion, and violence to enforce their monopoly.
In January 1999, based on an FBI investigation of the Luchese LCN family's involvement in the Long Island carting industry, Luchese soldier, Jody Calabrese pled guilty to two extortions and conspiracy to murder two individuals, one a business competitor. In May 2001, Luchese Capo and former acting boss, Salvatore Avellino also pled guilty to racketeering charges in connection with this investigation. FBI agents had determined that Avellino's crew had controlled portions of the Long Island carting industry since the 1970s. Avellino used whatever means necessary, including murder and arson to maintain his stronghold over the industry. Avellino's crew was responsible for 14 arsons. As a result of this investigation, 12 individuals pled guilty, $7.5 million was forfeited, and Avellino's crew was dismantled.
Ready-Mix Concrete Industry
The Ready-Mix Concrete Industry in New York City is an area of investigative focus by the FBI due to its history of being controlled by the La Cosa Nostra (LCN) through labor racketeering activities. At one time, the LCN effectively regulated the concrete industry through its control of the two unions involved in manufacturing and delivering most of the concrete utilized in Manhattan construction projects. These two unions are the Teamsters Local 282, and the Cement and Concrete Workers Union. The Colombo LCN Family extorted a one percent kickback on all pouring contracts up to $2 million. Contracts from $2 million to $15 million were reserved for certain contractors which were approved by the LCN Commission and resulted in a 2 percent kickback to the LCN, and contracts over $15 million were reserved for a company controlled by the Genovese LCN Family.
Garment Industry
In the 1960s, the La Cosa Nostra (LCN) Commission, or ruling body ruled that the Luchese LCN Family would control most of the criminal enterprises associated with the New York Garment Center. The Luchese Family accomplished this through its manipulation of the Union of Needle Trade Industrial Textile Employees and through control of several key trucking companies which served the garment center. As the result of a 1998 FBI labor racketeering investigation, seven LCN members and associates, including the acting-boss of the Luchese Family, pled guilty to violations of the Hobb's Act in connection with their extortionate control of the garment center.
International Brotherhood of Teamsters
In June, 1988, based on a FBI investigation code named Liberatus, a civil Racketeer Influenced and Corrupt Organizations complaint was filed in federal court in New York City charging the ruling body of La Cosa Nostra (LCN), the Commission, with controlling the International Brotherhood of Teamsters (IBT). The IBT entered into a consent decree with the federal government in 1989, and an Independent Review Board (IRB), including former FBI Director William Webster, was created to oversee the affairs of the union. The IRB is mandated to investigate and adjudicate allegations of corruption, bribery, embezzlement, and extortion as well as violations of the Hobbs Act, Taft-Hartley Act, and Landrum-Griffin Act. The IRB is also assigned authority to investigate any allegations of domination, control or influence of any IBT affiliate, member or representative by LCN or other organized crime entities. The IRB investigates misconduct, and conducts its disciplinary hearings pursuant to court-approved rules of procedure. The IBT is required to pay all costs and expenses associated with running the IRB. Since March 1989, 568 charges have been filed against 533 individual IBT members; and since 1992, 25 local unions and two regional union councils have been placed into trusteeship.