Alex Lukov - Brighton Beach Russian Mafia in Gasoline Scam - 29May01
Stefan Lemieszewski
FOR IMMEDIATE RELEASE
May 29, 2001
PRESS RELEASE
Seven Charged in Connection with Russian Organized
Crime/La Cosa Nostra Bootleg Gasoline Scheme
LORETTA E. LYNCH, United States Attorney for the Eastern
District of New York, and BARRY W. MAWN, Assistant
Director-in-Charge of the Federal Bureau of Investigation in New
York, today announced the unsealing of a superseding racketeering
indictment charging five defendants with racketeering, racketeering
conspiracy, mail fraud, wire fraud and money laundering in connection
with the illegal distribution of bootleg gasoline. Two additional
defendants were charged with mail fraud, wire fraud, money
laundering, and conspiracy to commit extortion in connection with the
scheme. The charges are the product of an extensive investigation
conducted by the Federal Bureau of Investigation, the New York
State Department of Taxation and Finance, and the Kings County
District Attorney's Office.
The superseding indictment charges that between 1996 and 2000,
ALEX LUKOV, MARCO MINUTO, JOHN ROMEO, JOSEPH
CASSESE and BORIS KERZHNER were part of "the Lukov
Organization," a criminal enterprise that was managed by LUKOV, a
member of Russian Organized Crime who operated under the
protection of the Luchese Organized Crime Family through one of its
soldiers, MARCO MINUTO. According to the indictment, the Lukov
Organization sought to generate illegal profits for its members and for
the Luchese Family through the commission of various frauds, including
the distribution of "bootleg" or untaxed gasoline smuggled from New
Jersey to gas stations on Long Island, thereby causing New York
State to lose millions of dollars in tax revenues. The scheme worked as
follows: LUKOV, in partnership with Luchese Associate ROMEO,
and with the assistance of defendants BORIS KERZHNER and
IRINA KERZHNER, operated a number of gasoline companies,
nominally owned by "front men." These companies purchased New
Jersey bootleg gasoline from CASSESE, a New York gasoline
wholesaler, and then sold that gasoline for cash at below market rates
to Long Island gas stations. Gas station owners who failed to pay
timely were subjected to threats of violence by members and
associates of the LUKOV Organization. The indictment specifically
charges LUKOV, MINUTO, CASSESE and GIOVANNI
LUBRANO with conspiring and attempting to extort a Long Island gas
station owner when he failed to make payments. According to the
indictment, LUKOV and KERZHNER are also charged with setting
up and operating a medical supply company, AOB Medical Supply, in
Queens, New York, for the purpose of laundering proceeds of the
bootleg gasoline scheme as well as submitting fraudulent
reimbursement claims to insurance companies.
In another scheme, MINUTO, LUKOV and ROMEO are charged
with defrauding Citgo Petroleum of more than $2,000,000 worth of
petroleum products in 1996 and 1997 by misrepresenting the financial
status of Panther Oil, a company operated by LUKOV and ROMEO
at that time. Citgo extended credit to Panther Oil for the purchase of
the petroleum products, and the defendants failed to make repayment.
Finally, the indictment charges LUKOV with assault in aid of
racketeering and perjury in connection with civil litigation in the Eastern
District of New York arising out of the Citgo fraud.
In announcing the indictment MS. LYNCH thanked the Kings County
District Attorney's Office and the New York State Department of
Taxation and Finance for their assistance in the investigation and
stated, " This racketeering conspiracy featured a collaboration between
two criminal groups, Russian organized crime and the Luchese Family.
This office and our law enforcement partners will continue to assign
high priority to investigating, prosecuting and dismantling these groups.
When they attempt to join forces, we will use all law enforcement tools
at our disposal to destabilize their ventures and to prosecute all of
those involved."
MR. MAWN stated, "This case represents the melding of the old
with the new in organized crime opportunity. Russian organized crime
figures and members of the Luchese family conspired to run an illegal
gas tax scheme, and then set up a medical supply company that
laundered the gas proceeds and submitted bogus insurance claims.
Whatever innovative schemes organized crime comes up with, it's
always about exploiting someone or something to make money. And
our job, whatever the scheme, is always to prevent them from doing it
or catch them when they do it."
If convicted on each of the counts in which they are charged, the
defendants face up to 20 years incarceration. The indictment also
seeks the forfeiture of over $1,000,000 in illegal proceeds from the
charged schemes. (1) The case is assigned to Judge Sterling Johnson,
Jr., United States District Judge, Eastern District of New York.
The government's case is being prosecuted by Assistant United States
Attorneys Thomas Firestone, Patricia E. Notopoulos and Sharon
Volckhausen.
Pedigree information for the defendants is as follows:
Name: Alex Lukov
DOB: 7/16/65
Address: 750 West Broadway, Apt. 2S, Long Beach, New York
Aliases: Oleg Lukov, Oleg Lukovos, Alex Lukovos, Yakov
Mogilevich, Alex Romeo, Alex the Russian, Edward
Gershovich.
Name: Marco Minuto
DOB: 3/23/66
Address: 18 Willow Hill, Upper Saddle River, New Jersey
(currently in federal custody)
Aliases: "The Old Man," "The Other Guy"
Name: John Romeo
DOB: 10/3/48
Last Known Address: 335 West Broadway, Long Beach, New
York
Name: Joseph Cassese
DOB: 7/27/50
Address: 11 Warton Place, Garden City, New York
Name: Boris Kerzhner
DOB: 2/21/70
Address: 2806 East 27th Street, Brooklyn, New York
Name: Irina Kerzhner
DOB: 7/8/77
Address: 2142 Brown Street, Brooklyn, New York
Name: Giovanni Lubrano
DOB: 10/26/70
Address: 2431 Belmont Avenue, Apt. 4H, Bronx, New York
Aliases: Joseph, Joe
1. The charges contained in the indictment are merely allegations and
the defendants are presumed innocent unless and until proven guilty.