GRAND JURY FILES ENTERPRISE CORRUPTION CHARGES FOLLOWING TWO YEAR INVESTIGATION INTO NEARLY FIVE MILLION DOLLAR A YEAR FAMILY RUN ILLEGAL NUMBERS OPERATION

Bronx District Attorney Robert T. Johnson announced today that a two year investigation has led to the dismantling of a nearly five million dollar a year illegal numbers operation that conducted business at dozens of locations in the Bronx, Manhattan, Brooklyn and Queens.

The investigation resulted in the indictment of seven people on one count of Enterprise Corruption, a Class B felony offense punishable by up to 25 years imprisonment, and six counts of Promoting Gambling in the first degree, a Class E felony offense punishable by up to 4 years imprisonment. If the defendants are found guilty of Enterprise Corruption, criminal forfeiture proceedings could be initiated in an effort to seize any assets that were acquired with the profits from the gambling operation. All seven defendants share familial ties with one another, either as a blood relative, a spouse or a girlfriend. They were arrested during the execution of search warrants at twenty four separate locations, including private homes, policy banks and storefront locations where bets were placed. Investigators recovered more than $108,000 in cash, six vehicles, and two guns. Additional cash is expected to be recovered following the execution of search warrants for two bank deposit boxes.

District Attorney Johnson said: “ Unlike the legal numbers run by the New York State Lottery Commission, revenue generated through this illegal enterprise is not earmarked for education, public safety or any other state funded service. Instead, our citizens’ hard earned money was amassed ‘tax free’ for the sole benefit of the defendants.”

New York City Police Commissioner Raymond W. Kelly said: “This illegal family business was no ‘mom and pop’ operation. It included over one hundred locations in four boroughs. Thank you to the members of the Police Department and the Bronx DA’s Rackets Bureau for their outstanding work shutting this ring down.”

In addition to the seven alleged key members of the ring who have been indicted, seventeen other lower level employees of the organization were also taken into custody during the execution of search warrants at various locations. Fourteen are facing misdemeanor gambling charges in Manhattan. Two have been charged in Queens and one is being charged in Brooklyn.

The investigation, conducted jointly by the New York City Police Department’s Organized Crime Control Bureau and the Bronx District Attorney’s Rackets Bureau, began in July 2002 and involved the use of electronic surveillance, visual surveillance, telephone records and court ordered wiretaps. On several occasions during the course of the investigation, undercover detectives also placed bets at various locations where lower level employees collected the policy slips and passed on betting information to the policy banks via telephone. Evidence from the investigation indicated that the enterprise generated profits of approximately $400,000 a month, excluding overhead for the rental and maintenance of storefront locations, and salaries for numerous employees. It is believed that the enterprise controlled approximately 110 locations in four boroughs, some 80 of which investigators were able to identify after breaking a coded list of the locations.

Nelson A. Perez, 63, of Valley Cottage, New York allegedly controlled the policy ring and made all tactical and strategic decisions regarding its to day to day operations. Nelson Perez, 40, of New City, New York, Joel Contreas, 34, of North Bergen, New Jersey, Nelson Rosario Jr., 24, of 53-55 East 130th Street, Manhattan, and Luis Rosario, 23, of 228 Naples Terrace, the Bronx, allegedly worked as runners. They were responsible for collecting and transporting gambling revenue from the storefront locations to the “banks” and paying out the cash prizes to winners who “hit” the number. Perez and Contreas are the son and nephew of the elder Perez. Nelson Rosario Jr. and Luis Rosario are the sons of the elder Perez’ girlfriend who also was indicted.

Griselda Rosario, 48, who lives with the elder Perez, and Mariana Aguilar, 49, of New City, New York, the live in girlfriend of the younger Perez allegedly managed two of three policy banks where the gambling proceeds were kept.

District Attorney Johnson thanked members of his staff and the New York City Police Department for their hard work on the investigation; Chief Douglas Zeigler, NYPD Organized Crime Control Bureau, Inspector Christopher Rising, Commanding Officer NYPD Vice Enforcement Division, Lt. James Kimmel, Commanding Officer NYPD Bronx Vice Enforcement Squad, Assistant District Attorney Stephen Bookin, Chief, Investigations Division, and Assistant District Attorney Thomas Leahy, Chief , Rackets Bureau.

Mr. Johnson expressed special appreciation for the effort and dedication of Detectives
Edmond Brosnan, Michael Young and Jose Romero, NYPD Vice Enforcement Squad, Assistant District Attorney Eric Hirsch, Deputy Chief, Rackets Bureau, Assistant District Attorney Rachel Singer, Rackets Bureau, Julio Santiago, Forensic Accountant, Investigations Division.