Nicky Scarfo Jr. - 2011 Indictment and Imprisonment

2011 Indictment and Imprisonment

On October 31, 2011, Scarfo was arrested by the FBI for what the agency said was his role in the attempt to take over and embezzle millions of dollars out of FirstPlus Financial Group. Scarfo's wife, Lisa Murray-Scarfo, was also indicted in the scheme, along with alleged Lucchese mob associate Sal Pelullo and several officials of FirstPlus. Scarfo's father and Victor Amuso were named as unindicted coconspirators. Federal authorities said Scarfo and his associates took $12 million from the loan mortgage company and used the money to buy luxury automobiles, houses, a jet aircraft, jewelry, and a yacht they named "Priceless". U.S. Attorney Paul J. Fishman said Scarfo used his proceeds to buy a $715,000 home, $25,000 in jewelry for his wife, a $100,000 Audi automobile, and mortgage payments on a home owned by his ex-wife. Fishman also alleged that Scarfo and his associates forced FirstPlus to pay $6 million and give 1.6 million shares of stock to Scarfo and Pellulo in exchange for two companies (Globalnet Enterprises and Rutgers Investment Group) that had almost no value. Prosecutors said they had 7,500 recorded telephone conversations in which Scarfo discussed his illegal activities, including one in which he talked about faked documents to hide his involvement and another in which he boasted of a $36,000-a-month consulting contract for which he performed no work. They said Scarfo earned $450,000 from his consulting contract, which ran from June 2007 to April 2008. While Scarfo's wife was allowed to post bail, federal district court judge Robert Kugler refused to allow Nicky Scarfo, Jr. to post bail because he was allegedly a danger to the community Scarfo asserted in court that he was destitute and could not afford an attorney. U.S. District Magistrate Ann Marie Donio appointed public defender Michael E. Riley for him. Scarfo appealed the denial of bail on December 18, but Judge Kugler denied bail again two days later. The Federal Bureau of Prisons placed Scarfo in solitary confinement in the Special Housing Unit at the Federal Detention Center, Philadelphia to protect him from rival mobsters who attempted to kill him in 1989. Judge Kugler urged the government to put Scarfo into the general prison population, per Scarfo's request.