Written by :
Published on :
- Most of the defendants hailed from the New York City borough of Staten Island
- Three online gambling sites based out of Costa Rica named in complaint
- “As alleged in the indictments, these defendants exploited vicious cycles of addiction,” DA said in statement
- One of the defendants offered to pay undercover detective back gambling debts with oxycodone pills
Eight individuals, mostly hailing from the New York City borough of Staten Island, have been charged for running an oxycodone and Internet gambling scam.
Each appeared before a Manhattan Supreme Court judge on Tuesday following a month’s long probe by undercover detectives.
Prosecutors said Joseph Byrne, 54; Robert Blume, 52; and John Desantis, 40, sold hundreds of illegally obtained prescription pills (usually between 90 and 180 pills per month) between October 2014 and July 2015.
Byrne and his accomplice, Steven Feuerstein, 56, allegedly played bookie through Costa Rican gambling websites, BettorDays.ag and BETBTB.com.
Alleged “gambling hustlers” Ralph Castore, 70; Anthony Russo, 52; and Michael Cohen, 28, were also taken down as a result of the investigation by the same undercover detective. The three men were involved in the website ABCwagering.ag.
During the time period charged, Russo and Castore transacted more than $141,000 in bets involving the undercover detective.
As part of the online gambling scheme involving Byrne, Blume and Desantis, as well as Feuerstein, the undercover detective determined Byrne to be acting as a sheet-holder under Feuerstein’s master account. In this role, Byrne was responsible for maintaining and recruiting bettors, acting as a runner, and distributing gambling proceeds. As master agent, Feuerstein had authority to open, close, and adjust bettors’ accounts. Feuerstein gave Byrne and his bettors, which included an undercover NYPD detective, Internet gambling accounts that they used to place bets. Feuerstein and Byrne received a share of the profits. During the time period charged, Byrne and Feuerstein accepted more than $125,000 in bets from the undercover detective alone.
On several occasions, when Byrne owed the undercover detective money for winning bets, Byrne paid the detective with oxycodone pills. Byrne paid Bloome $18 per pill but charged the undercover $26 per pill.
“As alleged in the indictments, these defendants exploited vicious cycles of addiction – specifically, online gambling and opioid narcotics – to enrich themselves,” said District Attorney Vance. “But, it didn’t stop there – several of these defendants are also accused of orchestrating elaborate schemes to funnel the proceeds of their illegal activities through shell companies and cash transactions to hide their income and defraud taxpayers. I thank our partners at the NYPD, the Office of the Special Narcotics Prosecutor, and the New York State Department of Taxation and Finance, for their remarkable collaboration over the course of this long-term investigation.”
NYPD Commissioner James P. O'Neill said: "From their illicit prescription pill operation to complex gambling and public fraud schemes, the alleged defendants named in this indictment demonstrated a prolonged disregard for our laws. I commend our investigators for their diligence in taking down this operation, as well as the vital support we received from the Manhattan District Attorney's Office and our other law enforcement partners."
Special Narcotics Prosecutor Bridget G. Brennan said: “These defendants exploited loose regulations and a high demand for addictive prescription pills, and used these pills as a form of currency to facilitate other criminal activity. I am pleased that my office’s Prescription Drug Investigation Unit was able to assist the Manhattan District Attorney’s Office in this investigation.”
New York State Acting Commissioner of Taxation and Finance Nonie Manion said: “These allegations of lying on a tax return to hide income—or willfully failing to file a return altogether—are egregious crimes that cannot go unpunished. These defendants are accused of not only stealing from New York State, but also of depriving their fellow residents of critical public services and programs. We will continue to work with Manhattan District Attorney Vance, and all levels of law enforcement, to make people think twice before attempting to carry out a tax fraud scheme.”
- Gilbert Horowitz, Gambling911.com
