Fed Judge Issues Order on $10M Scam by Federal Hill Business Owner, Wife & Another
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Fed Judge Issues Order on $10M Scam by Federal Hill Business Owner, Wife & Another
At the request of the United States Attorney Stephen Dambruch for the District of Rhode Island, U.S. District Court Chief Judge William Smith on Tuesday issued a temporary restraining order (TRO) prohibiting a Providence businessman Michael Shine; his wife Meagan Shine; and a third associate, Melissa Pinelli from using the U.S. Postal Service or other services to distribute advertisements, solicitations or promotional materials that represent that recipients have or will win, or are eligible to win cash, receive prizes, or items of value in return for a “processing fee,” after the government filed a civil complaint in federal court seeking to enjoin this activity as an alleged ongoing mail fraud scheme.
Dambruch soon leaves the U.S. Attorney's office to join former U.S. Attorney and now RI Attorney General-elect in his office.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTAccording to the government, It is alleged in court documents that since 2011, and continuing to the present, that the Smiths and Pinelli have "utilized the U.S. Mail to engage in predatory mail fraud schemes that primarily affect the elderly and vulnerable through fictitious businesses they owned and operated." The business tied to the scheme are Lucky Dog, LLC, d/b/a Premium Ops & Incentives, and Destiny Merchandise, LLC, d/b/a Independent Catalog Services, owned by the Shines, and Premier Caging Services, owned by Melissa Pinelli.
The three businesses operated out of the same address in Providence. These schemes have "duped victims into sending more than ten million dollars in supposed fees for the processing of cash prizes, valuable items, or other premiums that they are promised, but will never receive."
As part of the scheme, individuals, often elderly and vulnerable individuals, are contacted via U.S. Mail with deceptive solicitations that convey the false impression that recipients have been pre-selected or that they have been verified and are entitled to claim a large amount of money in a lottery, or are entitled to a valuable item. In the mailings, recipients are or were instructed to send money, frequently by a deadline, to a PO Box in Providence for the “processing” or “handling” of their purported winnings, claims the U.S. Attorney's office.
The mailings are printed on official-looking or certificate paper, and frequently contain other language and details designed to make them appear official or legitimate, including bar codes, document control numbers, printing that appears to be rubber-stamped, such as the phrase “authorized document,” highlighted text, bank-check style typeface and formatting, and identification and other codes. The solicitations use selectively-emphasized text and graphics to create the false overall impression that recipients are receiving notices that they are already winners of substantial awards. In reality, not only have recipients not won any prize, the mailers have done nothing to verify that the recipients are eligible for such a prize.
An investigation by United States Postal Inspection Service agents and the United States Attorney’s Office revealed that sweepstakes solicitations were sent to recipients in forty-one states. Many victims interviewed stated that they were contacted numerous times and were led to believe that they had won substantial sums of money and/or valuable prizes. Each time, victims were instructed to submit processing fees of between $20 and $30 dollars in order to claim their winnings. Some elderly victims sent well over a thousand dollars to the defendants in response to multiple solicitations.
The investigation conservatively estimated the number of responses and payments received in response to the solicitations at nearly 50,000 per year.
Violence on Federal Hill: A Chronological History
Murder of Waterman Irons
1888: Murder of Waterman Irons by Dennis "Spiker" Murphy and "Pete" Hackett
In 1888, an 82 year old leather merchant named Waterman Irons was murdered by Dennis “Spiker” Murphy and “Pete” Hackett. According to a Providence Evening News article from April 27, 1912 Irons' murder:
“..took place at the man’s little shop on High Street, now Westminster Street and Dean Street.” [1]
Ethnic Tensions on Rise
Late 19th Century: Tensions Rise Between Irish & Italian Immigrants
Federal Hill was initially settled by English immigrants. Irish immigrants began settling on the Hill during the 1830s and Italian immigrants followed suit later in the 19th century. By the 1880s tensions between the more established Irish and the new Italian arrivals began to erupt on Federal Hill resulting in acts of violence like the "stab and shoot" referenced in the accompanying photo.
Photo Courtesy of Providence City Archives
Macaroni Riots
1914: The Macaroni Riots
The Macaroni Riots of 1914 began when a local wholesaler on Federal Hill, Frank P. Ventrone raised the price of macaroni by 50 percent. A monthlong series of labor unreset and riots ensued on the Hill. As Tony Marrocco(“Monaleek”) wrote at that time in the Italian Echo:
“It was Sunday afternoon when about 12 immigrants held a rally in Olneyville Square and then marched to Federal Hill. They proceeded to Ventrone’s Grocery on Atwells Avenue to protest the rise in the price of macaroni. They smashed windows and stole cheese, macaroni, salami, capacollo and most anything in sight. Twenty mounted police put a stop to the riot in two hours. The riot made a point and the price of macaroni returned to its pre riot price.” Source
Frank P. Ventrone
Frank P. Ventrone: The "Macaroni King" of Federal Hill
Federal Hill shopkeeper Frank P. Ventrone's wholesale shop was boarded up during the Macaroni riots.
According to Providence City Archivist Paul Campbell:
"At the end of it Ventrone agreed to lower his prices, and things quieted down around the World War I period when the Providence Police Department started to bring in Italian speaking police officers.”
Photo Courtesy of Providence City Archives
"Daddy" Black Murder
1932: Murder of Arthur "Daddy" Black
From Providence Police Department [Campbell, P., Glancy, J., Pearson, G.(2014), Arcadia Publishing]
"The Jazz Age in Providence produced many great personalities, but none greater than Arthur"Daddy" Black who, during the 1920s, was kingpin of an illegal numbers pool that offered local blacks the long-shot opportunity to win big. A 20-year Navy veteran who was cited twice foil bravery during World War I, Daddy Black's investments included sponsorship of black and white professional baseball and basketball teams. His entrepreneurial skills earned him the accolade "Providence's Richest Negro," but his success in the numbers racket earned the attention of a new generation of violent gangsters. On September 24,1932, Black was shot to death in his office on 160 Cranston Street by a group of black assassins working under the direction of Italian mobsters. An estimated 3,000 mourners attended his funeral."
Photo Courtesy of Providence Police Archives
Raymond Patriarca
1954: Raymond Patriarca Becomes Mob Boss
Excerpt from Rhode Island Monthly Federal Hill Timeline
1954 Organized crime boss Philip Buccola flees New England for Sicily, leaving Raymond Patriarca in control. Patriarca becomes a notoriously ruthless mob overlord and is ultimately arrested twenty-eight times.
Photo Courtesy of Providence Police Archives
Tiger Balletto Murder
1955: Mob Hit on George “Tiger” Balleto at Bella Napoli Cafe
From Providence Police Department [Campbell, P., Glancy, J., Pearson, G.(2014), Arcadia Publishing]
"A victim of a period of mob violence in the 1950s in Providence under the consolidated power of crime boss Raymond Patriarca, George "Tiger" Balletto was shot in the back several times on the night of August 10, 1955 while drinking an orangeade and vodka at the end of the bar at Bella Napoli Cafe on 93 Atwells Avenue. Police reported that a dozen witnesses of the shooting "had been sticken with total loss of memory."
Photo Courtesy of Providence City Archives
Marfeo & Malei Murder
1968: Mob Hit on Rudolph Marfeo and Anthony Melei inside Pocasset Avenue Grocery Store
Marfeo and Melei were gunned down inside grocery store on Pocasset Avenue on April 20, 1968.
RI v. Raymond Patriarca
1973: State v. Raymond Patriarca
Excerpt from STATE v. Raymond L.S. PATRIARCA. No. 1566-Ex. &c. Supreme Court of Rhode Island. July 20, 1973:
"It appears that at about 2:30 on the afternoon of Saturday, April 20, 1968, Rudolph Marfeo and Anthony Melei were shot to death while shopping in a market on Pocasset Avenue in the city of Providence. Apparently, it was Marfeo's custom to shop for groceries in that market on Saturday afternoons, and while he and Melei were in the market two masked gunmen entered and shot them both.
Thereafter, on June 2, 1969, as a result of these homicides three indictments were returned by the grand jury. Indictment No. 69-769 charged the appellant here, Raymond L.S. Patriarca, with conspiring to murder Rudolph Marfeo. Others named in that indictment were Maurice R. Lerner, Robert E. Fairbrothers, John Rossi, and Rudolpho G. Sciarra. In Indictment No. 69-767 the appellant here and Sciarra were charged with being accessories to the murder of Marfeo, while Lerner, Fairbrothers, and Rossi were charged with the murder of Marfeo. In Indictment No. 69-768 the appellant here and Sciarra were charged with being accessories to the murder of Anthony Melei, while Lerner, Fairbrothers, and Rossi were charged with Melei's murder."
Dickie Callei Murder
1975: Mob Hit on Dickie Callei at the Acorn Social Club
From a Providence Journal article on March 15, 1975.
"Police say Callei was killed sometime overnight and his body driven into the woods and buried between 1:30 and 6:30 yesterday morning. Rehoboth Police Chief Raymond McKearney said snow lined the bottom of the grave, leading police to conclude that the grave might have been dug hours or even days before Callei was buried in it. Police said Callei was clad in a blood-soaked white shirt and green tie and buckskin shoes. A green and white sports coat was buried beside him. He was wearing a watch and two rings with initials on them.
Chief McKearney said it appeared from the marks and blood stains in the snow that he was dragged from the car by more than two persons, but wouldn't say how. There were blood stains between the tire marks at the end of the trail, indicating the body probably was taken from a car trunk. Chief McKearney called the slaying "brutal" and said it appeared to be a gangland killing. Dr. Shamey said Callei suffered three skull fractures caused by blunt instruments, stab wounds in the face, chest and abdomen and several bullet wounds in the back, the bullets going through the heart and lungs. He said shots were fired from close range."
Joe "Onions" Murder
1978: Mob Hit on Joe “Onions” Scanlon at Andrew Merola’s night club.
From the New York Times (In Rhode Island, an Old Mobster Lets Go of a Long-Kept Secret, 21 December 2008)
Thirty years ago, organized crime in Rhode Island was still like a rogue public utility. Raymond L. S. Patriarca, the old man with bullet tips for eyes, still ran the New England rackets from a squat building on Federal Hill. And men, from the merely dishonest to the profoundly psychopathic, still followed his rules.
Among them was Nicky Pari, who supposedly declined the honor to join the Mafia because he preferred the freelance life. If not made, he was known, in part because he had done time for helping a Patriarca lieutenant hijack a truck with a $50,000 load of dresses.
In April 1978, he and another freelancer, Andrew Merola, decided to address the delicate matter of a police informant within their ranks, a droopy-eyed young man from Hartford named Joseph Scanlon. The theories behind his nickname, “Joe Onions,” are that he made the girls cry or, more prosaically, that his surname sounded like scallion.
One morning Mr. Pari lured Mr. Scanlon and his girlfriend, who was holding their infant daughter, into Mr. Merola’s social club, in a Federal Hill building now long gone. Mr. Pari struck Mr. Scanlon in the face. Then Mr. Merola fired a bullet that shot through the man’s head and caught the tip of one of Mr. Pari’s fingers.
The girlfriend was ordered to leave the room. When she came back, her child’s father was wrapped in plastic near the door, his jewelry gone, his boots placed beside his body. A package, awaiting delivery.
The girlfriend, once described as a “stand-up girl” who wouldn’t talk, did, and the two men were convicted of murder in a case lacking a central piece of evidence: the body. They successfully appealed their convictions, but in 1982 they pleaded no contest to reduced charges in a deal that required them to say where the body was.
Dumped in Narragansett Bay, they said.
"Slick" Vecchio Murder
1982: Mob Hit on Raymond “Slick” Vecchio
According to a Rhode Island Monthly Federal Hill timeline, in 1982:
Raymond “Slick” Vecchio is shot at Vincent’s restaurant on Atwells by two masked men. Police suspect mobster strongman Kevin Hanrahan, who himself is shot outside of the Arch restaurant, also on Atwells, in 1992.
"Bobo" Marrapese
1987: "Bobo" Marrapese Charged With Slaying Callei 12 Years After Murder
According to a March 13, 2005 Sun Chronicle article:
"Frank L. “Bobo” Marrapese, who reputedly ran gambling and loan sharking operations in Providence, was charged with Callei's slaying 12 years after the murder. Despite the age of the evidence, a 29-year-old Rhode Island prosecutor named Michael Burns was able to convince a jury that Marrapese had stabbed, bludgeoned and shot Callei in Providence's Acorn Social Club."
Keven Hanrahan Murder
1992: Mob Hit on Kevin Hanrahan Under the Arch on Atwells Avenue
Allan May writes:
"On September 18, 1992, after having dinner with Buehne, Paulie Calenda, a millionaire businessman and mob associate, and others, Hanrahan went to a North Providence bar called The Arch, where he told several people he was expecting a "big score." After leaving the restaurant Hanrahan was walking down Atwells Avenue when two men confronted him. One pulled a .38 and fired three bullets into his face ending the life of the Irish tough guy."
