Verdict Expected Today In FirstPlus Trial
By George Anastasia
For Bigtrial.net
Verdicts are expected today in the FirstPlus Financial racketeering fraud trial.
The anonymously chosen jury panel sent a note to Judge Robert Kugler at the end of yesterday's
deliberations indicating it was close to a final decision on all 25 counts in the case.
"We feel we are close to consensus," the note read, "but need to sleep on it. We've done all we can
today and are ready to leave."
The panel has deliberated for parts of 10 days over a two-week period after listening to testimony and
evidence in a trial that began back in January.
The government has alleged that mobster Nicodemo S. Scarfo and his business associate, Salvatore
Pelullo, secretly took control of FirstPlus, a troubled Texas-based mortgage company, in 2007. The
two then orchestrated a series of phony business deals and bogus consulting contracts that allow them
to siphon $12 million from the company, according to the case against them.
The money was used to support a lavish lifestyle. Authorities allege that Scarfo and Pelullo bought a
yacht valued at nearly $900,000; that Pelullo purchased a $217,000 Bentley automobile, and that
Scarfo and his wife, Lisa Murray Scarfo, bought a $715,000 home near Atlantic City.
Throughout the trial, the defense has argued that FirstPlus failed because of a poor economy and the
negative impact of the federal investigation which became public after a series of raids in May
2008. The defense also argued that the government has used the specter of organized crime to
sensationalize the charges but insisted there was no mob involvement.
Thirteen defendants were originally named in a 25-count indictment handed down in November 2011.
Six defendants, including Scarfo's wife, have pleaded guilty. She is awaiting sentencing on bank fraud
charges linked to a mortgage for the home near Atlantic City.
In addition to Scarfo and Pelullo, those on trial include former FirstPlus CEO John Maxwell, his
brother, William, who worked as a lawyer for the company, and lawyers David Adler, Gary McCarthy
and Donald Manno.
All seven are charged with racketeering conspiracy. Other counts in the indictment include bank fraud,
wire fraud, mail fraud, money laundering and obstruction of justice. Not every defendant faces every count. Scarfo and Pelullo also face weapons offenses.
I am only expressing my personal opinions or repeating public information from SEC filings or media outlets-which may or may not be correct. Do your own investigating before investing!
