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Reputed mob associate Ronald Galati's American Collision & Automotive Center has raked in more than $1.2 million in taxpayer money since 2011. Now the city of Philadelphia has severed the lucrative contract with the auto body repair shop.
Mayor Nutter's spokesman, Mark McDonald, initially praised the company, telling the Daily News: "They've been on time, they've done quality work, and they've worked within the estimate. In short, they've done a good job."
Philadelphia government regularly sent police cars and other city vehicles to Galati’s repair shop. That’s all about to come to a screeching halt.
"The city government is not looking to create controversy," McDonald said regarding the decision to sever ties.
And there is certainly no lack of controversy.
Galati was arrested last Friday "on allegations that he hired hit men to kill his daughter's boyfriend and a body-shop operator and his son."
Few additional details were offered related to Friday’s arrest.
Court documents reveal that city police and state organized-crime authorities have been investigating Galati for a year and a half for crimes related to insurance fraud.
Federal prosecutors are in the middle of a racketeering trial against reputed Philadelphia crime boss Joe Ligambi and his nephew George Borgesi for their alleged roles in the gambling and loansharking operations in the “City of Brotherly Love”.
According to the Philadelphia Inquirer, Galati abruptly switched attorneys, an indication they say he may be ready to start cooperating with authorities.
"If the guy starts to talk, there's going to be some problems," said a source familiar with the investigation. "Anyone who has done something illegal with Ron Galati in the last 20 years is not going to have a very Merry Christmas."
- Jagajeet Chiba, Gambling911.com
