Alleged mob boss busted in sting

PROVIDENCE, R.I. (WPRI) - The man federal authorities say is the acting boss of the New England crime family pleaded not guilty to charges in a sweeping indictment accusing him of racketeering and extortion.

Anthony DiNunzio, 53, of East Boston, appeared in federal court in Providence wearing a black jogging suit and glasses. He is being held without bail until a detention hearing next month.

“As of this morning at approximately 6 a.m. the New England La Cosa Nostra became leaderless when its alleged boss, Anthony DiNunzio, was arrested,” said Richard Deslauriers, FBI Special Agent in Charge of the Boston office.

Rhode Island State Police Colonel Steven O'Donnell said DiNunzio was arrested "without incident" at the Gemini Social Club in the North End of Boston.

According to the indictment unsealed Wednesday by the Rhode Island U.S. Attorney’s Office, DiNunzio is accused of receiving monthly protection payments from adult entertainment businesses in Providence including the Cadillac Lounge, The Satin Doll, Foxy Lady and Desire.

The charges come in a third superseding indictment in a case that has already sparked seven plea agreements with federal prosecutors, including from the former mob boss Luigi “Baby Shacks” Manocchio.

"Make no mistake we will continue to apply unrelenting pressure on those who choose to make their living on their fellow citizens," Rhode Island U.S. Attorney Peter Neronha said at an afternoon press conference.

Beside DiNunzio, also named in the new indictment are accused mob associates Albino “Albie” Folcarelli and Thomas Cardillo. Folcarelli is scheduled to change his plea to guilty at a hearing next week.

The indictment is the clearest picture to date by federal investigators of who they say are the high-ranking members of the crime family and how they operate.

• Read the DiNunzio indictment

It is also the first time federal law enforcement has officially identified DiNunzio as the acting leader.

“In late 2009 and early 2010, DiNunzio, then an NELCN Capo assumed a leadership role and ultimately became the acting boss of the NELCN,” the indictment states.

The indictment alleges Rhode Island capo regime Edward “Eddy” Lato –who pleaded guilty in this case last month – would drive to Massachusetts to meet with DiNunzio and deliver protection payments.

One of those payouts totaled $5,000 and was seized by FBI agents on May 5, 2011, according to investigators.

“Organized crime likes to believe their reach is long, but our reach is longer,” Neronha said.

In June 2011, DiNunzio became aware of the investigation, according to prosecutors. The indictment quotes a conversation he had with a member of the Gambino crime family about a meeting at a Chinese food restaurant in Boston that he later learned was bugged.

“We met, me and two other guys… they had us on tape, I just found out yesterday,” the indictment quotes DiNunzio as saying. “The whole place was wired no matter what table we sat at.”

It was Lato who coughed up DiNunzio’s role in the family to a high-ranking member of the mob who was wearing a wire for the FBI. He was complaining that he thought he was being followed every time he travelled to Boston.

“They’re following [DiNunzio], I mean, not that they’re not supposed to follow him, he’s the [expletive] boss,” Lato said according to the indictment.

According to the indictment, DiNunzio was caught on tape discussing his leadership style to a member of the Gambino crime family. He said if a member of his crew failed to do as he said, he would kill them.

 “I’ll bury you right in the [expletive] ground puts all the dirt. You’re alive. They stay there. I’ll stay there [expletive] ten hours until your dead. And I’ll dig you back up and make sure your [sic] dead,” DiNunzio said according to the indictment.

• Read: History of the New England Bosses

DiNunzio is named in seven of the eight counts including charges of racketeering conspiracy, extortion conspiracy and multiple counts of Travel in Aid of Racketeering.

DiNunzio’s lawyer Robert Sheketoff had no comment coming out of court. But during the hearing he asked U.S. Magistrate Judge David Martin to instruct officials at the Wyatt Detention Center in Central Falls to make sure DiNunzio gets his insulin medication.

The chief of the Department of Justice's Organized Crime and Gang Division, James Trusty, flew up from Washington D.C. to take part in the press conference.

"We are determined to put La Cosa Nostra out of business and we wont stop until we have done just that," Trusty said.

Tim White ( twhite@wpri.com ) is the Target 12 investigative reporter for WPRI 12 and Fox Providence. Follow him on Twitter: @white_tim