FBI Raids Brokerage Firm With Alleged Mob Ties

By Victoria Cavaliere and Jonathan Dienst
|  Wednesday, Jun 9, 2010  |  Updated 4:25 PM EDT
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FBI Raids Brokerage Firm With Alleged Mob Ties

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WASHINGTON - MARCH 09: The seal of the F.B.I. hangs in the Flag Room at the bureau's headquaters March 9, 2007 in Washington, DC. F.B.I. Director Robert Mueller was responding to a report by the Justice Department inspector general that concluded the FBI had committed 22 violations in its collection of information through the use of national security letters. The letters, which the audit numbered at 47,000 in 2005, allow the agency to collect information like telephone, banking and e-mail records without a judicially approved subpoena. (Photo by Chip Somodevilla/Getty Images)

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The FBI has raided a Manhattan "boiler room" brokerage firm and arrested several people, including one suspect with alleged  links to the mob, officials said today.

The FBI raided two offices in the Garment District and other locations, officials said today. Thirteen people were charged in New York and Florida, including reputed Bonanno crime family soldier Anthony Guarino

Authorities said the brokerage would artificial inflate the value of a stock in a company with misleading sales pitches -- especially to elderly victims. 

Steven Kimmel was the President of the so-called "boiler-room" scheme and the offices of his Powercom/Empire firm along West 36th Street were searched by the FBI Wednesday.

According to court papers, Kimmel "was formerly employed by the Securities and Exchange Commission."

Investigators said the suspects solicited through phone calls more than $12 million from unsuspecting investors who thought they were purchasing shares of stock in Realcast and BBC Gaming companies. 

But 40 percent of the investors' cash was paid straight to Powercom and was never invested in Realcast or BBC Gaming, officials said. 

In addition, mailings stated no commissions were being paid when at least 40 percent of funds were allegedly paid out as commissions.

The suspects were expected to appear in court later Wednesday. Others charged include William Dick, Lance Barbarino, Gabriel Almandi, Ciro Cozzolino, Issac Davis, among others. 

In one case, suspect Jamil Fuller is accused of stealing the $50,000 dollars invested by one elderly client. The entire investment is lost, officials said.

In other cases, suspects allegedly claimed the firm was about to merge and their investment would soar in value. Instead, the suspects allegedly looted the cash.

And in another case, court papers state 50 percent of one $700,000 investment was split between some of the suspects.

The defendants face securities fraud, wire fraud and other related charges.

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