Walsh Begins New Phase Of Investigation Into Mob Influence Over District Council

In December Review Officer (“RO”) Dennis Walsh, issued his First Interim Report, which was filed in federal court in Manhattan, accompanied by hundreds of pages of exhibits, and included evidence and troubling allegations that the council remains influenced by the mob and is still a source of cash and illicit benefits for a select few.

“My office has deep historical knowledge and is developing current information about actual and attempted influence of organized crime over the affairs of the district council and the funds,” the RO, wrote in the report. “We have developed sufficient information to reasonably suspect that there are certain district council employees who have been and are currently under the influence of La Cosa Nostra figures.”

The report said individuals involved in running some of the local unions were under scrutiny for similar ties, something that Walsh said was “a matter of grave import” that remained under investigation.

In an email, the RO said he has begun a new phase of investigation pertaining to organized crime influence over the affairs of the District Council, its affiliated local unions and members. As part of the investigation, employees of the District Council are asked to disclose any information that they have about such conduct other than what they may know from the information available from the docketed materials in U.S. v. District Council (90 Civ. 5722) or from media accounts.

Those who say that they have no such information are asked to confirm their response by signing a declaration under penalty of perjury pursuant to Paragraph 5.d of the Stipulation and Order entered on June 3, 2010 (which grants the RO the authority, among other things, to compel sworn statements of any officer, agent, representative, employee, trustee or member of the District Council or the Benefit Funds concerning any matter within the RO’s authority).

All such persons are given a reasonable opportunity to consider their options and to consult with an attorney and may invoke their privilege against self-incrimination. All such persons are required to cooperate with the RO in this undertaking pursuant to Paragraph 7 of the Stipulation and Order. Failure to comply with the undertaking or invocation of the right against self-incrimination may subject persons to action pursuant to Paragraph 7, which makes failure to cooperate an express violation of the Stipulation and Order, as well as Paragraphs 5.b and 5.f.

The investigation is broad in scope and many employees (as well as persons affiliated with the Benefit Funds) can expect to be interviewed in the near future.

Note: We reported that council employees Ray Brugueras, Richard Tuccillo and Paul Pietropaolo have all resigned rather then sign the below declaration.

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