Racketeering Conspiracy—Protection Payments and Gambling

Anthony Megale, a Connecticut man who goes by the moniker “The Genius,” pleaded guilty to racketeering conspiracy.^[1] In doing so, he admitted to conspiring with other individuals to collect monthly extortion payments from businessman and to operate several illegal gambling operations.^[2] The racket is allegedly tied to the Gambino crime family, and Mr. Megale stated in 2002 that he had been made the acting underboss in that organization.^[3]

According to the plea agreement, Mr. Megale extorted payments of $2,000 a month from one businessman and payments of $200 a month from a different businessman; in less than two years, Mr. Megale collected roughly $60,000 in “protection” payments.^[4] Mr. Megale also shared in the proceeds of various illegal video poker machines, bookmaking and street numbers businesses, all of which were run by other individuals.^[5]

Racketeering Conspiracy
Racketeering conspiracy is covered by 18 U.S.C. § 1962 which states that it is illegal for a person to conspire^[6] to be associated with an enterprise which, through racketeering activity or the collection of unlawful debt, affects interstate or foreign commerce.^[7]

Racketeering activity includes conducting, financing, managing, supervising, directing, or owning all or part of an illegal gambling business.^[8]

The punishment for a violation of section 1962 is a fine, imprisonment for up to 20 years, or both.^[9]

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[1] US Attorney’s Office, Press Release: Stamford Man Pleads Guilty to Racketeering Charge, Oct. 4, 2005, available here.
[2] Id.
[3] Id.
[4] Id.
[5] Id.
[6] 18 U.S.C. § 1962(d).
[7] Id. § 1962(c).
[8] Id. § 1955(a).
[9] Id. § 1963(a).