A bribery scheme hatched at a holiday party has landed one carpenter in prison and another with a $150,000 bill.
John “Cigars” DeFalco was ordered on Tuesday to pay $148,213.79 in restitution for a scheme in which he and others took cash in exchange for accepting applications for membership to a local carpenters’ union chapter.
He pleaded guilty to charges related to the scheme in October 2020 in a cooperation agreement with prosecutors. As part of the deal, he testified against his alleged co-conspirator. It paid off for DeFalco: He will not be incarcerated, unlike his co-defendant.
“John is happy this is behind him and happier to have avoided prison,” Jeffrey Lichtman, an attorney for DeFalco, said in a statement.
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His conspirator, Salvatore “Sal” Tagliaferro, was sentenced last year to 60 months in prison after being found guilty on charges of honest services wire fraud, conversion of union assets and conspiracy. Prosecutors referred to him as the “ringleader” of the scheme. Tagliaferro has appealed the sentence.
According to authorities, Tagliaferro and DeFalco began discussing the scheme at a Christmas party in 2017. It involved accepting bribes of $600 to $2,000 from each of 494 potential union members between 2017 and 2019.
Tagliaferro, who was the president of Brooklyn-based Local 926, a chapter of the New York City District Council of Carpenters, accepted the membership applications after they were referred by DeFalco, an official with Local 157, according to the 2019 indictment. During this time, membership at Local 926 jumped by more than 800, but more than half of those members never worked a single hour at a union job, according to court documents.
This case prompted the United Brotherhood of Carpenters and Joiners of America, the parent organization of the District Council of Carpenters, to temporarily take control of Local 926. It also helped inspire changes to how the district council oversees its new members.