From Millions in Mob Rackets to Personal Redemption: the Survival of a Former Colombo Boss
By Alexander Ross
The scale of the gasoline bootlegging racket made federal intervention inevitable. In 1984, federal prosecutors and IRS Criminal Investigation agents unraveled the paper trails behind Franzese's shell corporations. In December 1985, federal prosecutors in Brooklyn unsealed a 65-count racketeering enterprise indictment against Franzese and several associates under the Racketeer Influenced and Corrupt Organizations (RICO) Act.
Rather than contest the overwhelming paper trail in open court, Franzese accepted a plea deal in 1986. The agreement sentenced him to 10 years in federal prison and mandated $14.7 million in restitution, alongside forfeiture of his properties, luxury vehicles, and commercial assets. The deal broke his criminal trajectory, placing him in federal detention while Carmine Persico and other Colombo leaders faced catastrophic sentences in the landmark Mafia Commission Trial across town.
| Operational Dimension | Traditional Mob Rackets (1970, 1985) | Franzese Gas Scheme (1981, 1986) |
|---|---|---|
| Primary Revenue Vehicle | Extortion, illegal gambling, loansharking, hijacked cargo | Fuel excise tax fraud via shell companies |
| Estimated Cash Flow | $50,000, $250,000 weekly per active crew | $8,000,000, $10,000,000 weekly at peak operation |
| Victims / Exposure | Local merchants, gamblers, commercial shipping firms | State and federal treasuries, commercial gas retail |
| Law Enforcement Vulnerability | Local police informants, street surveillance, wiretaps | IRS audits, federal interstate trade reviews, financial tracing |
| Ultimate Legal Outcome | Life terms under federal Commission RICO trials | Plea agreement, 10-year term, $14.7M total forfeiture |
Alexander Ross has covered the video game industry for a decade, writing deep dives on game design, esports tournaments, VR developments, and gaming culture.
