Manhattan District Attorney Robert M. Morgenthau announced today a guilty plea of two men associated with the Genovese organized crime family for running an illegal gambling ring at the New York City Terminal Produce Cooperative Market and Hunts Point Cooperative Meat Market (“the Markets”), both located in the Bronx, and at locations in New York County.  The New York City Terminal Produce Cooperative Market deals with fruit and produce that is brought from all over the country to be sold and distributed throughout the City.  The Hunts Cooperative Meat Market is a central location for the distribution of meat products throughout the City.

The defendants, JOHN CAGGIANO and DOUGLAS MALETON were involved in gambling activities at the Markets that included both sports betting and “policy” bets, also known as “the numbers.” The gambling operations took in approximately $1 million in bets per year. The Hunts Point criminal enterprise generated approximately $800,000 in illegal gambling proceeds during a one-year period from January 2005 through January 2006. 

The head of the Hunts Point criminal group was Ralph Balsamo, a soldier in the Genovese Crime Family and co-defendant of CAGGIANO and MALETON, who was also indicted for Enterprise Corruption.  Balsamo has earlier pled guilty to Enterprise Corruption and was sentenced to 2 ½ to 7 ½ years in prison and paid $50,000 in forfeiture.   CAGGIANO was the owner and operator of C&S Wholesale Produce, Inc., which was one of the larger wholesalers in the Hunts Point Terminal Produce Cooperative Market and as Balsamo’s lieutenant in the Hunts Point criminal enterprise, authorized and supervised the illegal gambling activities in the Markets.  CAGGIANO’S father-in-law is Dominick “Quiet Dom” Cirillo, the former acting boss of the Genovese Crime Family.

As part of the plea agreement, CAGGIANO, 59, pleaded guilty to Enterprise Corruption, a class B felony, in State Supreme Court. CAGGIANO will be sentenced to  1 ½ to 4 ½ years in prison and $176,000 in forfeiture. DOUGLAS MALETON, 60, pleaded guilty to Attempted Enterprise Corruption, a class C felony. MALETON will be sentenced to 1 year in jail. MALETON’s sentencing is scheduled for October 10, 2008 and CAGGIANO’S sentencing is scheduled for November 3, 2008, both in State Supreme Court. 

The seventeen-month long investigation leading to today’s guilty pleas was jointly conducted by the New York City Business Integrity Commission, the New York City Police Department’s Organized Crime Investigation Division, and the Manhattan District Attorney’s Office Rackets Bureau.

Mr. Morgenthau thanked Michael J. Mansfield, Commissioner and Chairman, and Ronald Cohen, Deputy Commissioner of Investigations, of the New York City Business Integrity Commission, as well as Special Investigators Rodney White and Rubin Santiago, for referring the matter to the Manhattan District Attorney’s Office and for working jointly on the investigation. 

Mr. Morgenthau also thanked New York City Police Commissioner Raymond W. Kelly, OCID commanding officer, Deputy Inspector Brian O’Neill, Sergeant Michael Gerard who supervised the investigation on behalf of the NYPD, and Sergeant Steve Mattioli, Detectives Andrew Varga and Steve Tesoriero, retired detective Al Schwartz, and Detective Nelson Pinela and retired detectives Jerome Pugh and Glenn Russo who were the case agents.

Assistant District Attorneys Brian D. Foley and Polly Greenberg, who are assigned to the District Attorney’s Rackets Bureau, are in charge of the prosecution, under the supervision of Assistant District Attorney Eric Seidel, Chief of the Rackets Bureau.  NYDA Senior Rackets Investigator Joseph Chimienti assisted ADAs Foley and Greenberg.    Assistant District Attorney Madeleine Guilmain is handling the asset forfeiture under the supervision of Assistant District Attorney Tara Miner, Chief of the Asset Forfeiture Unit.

Defendant Information

JOHN CAGGIANO, 9/18/49
3411 Country Club Road
Bronx, New York

DOUGLAS MALETON, 7/19/48
1103 Fteley Avenue
Bronx, New York 

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