Reputed New Jersey mobster guilty in takeover of Texas company
Scarfo, a reputed member of the Lucchese organized crime family, and Salvatore Pelullo were found guilty of a host of charges including racketeering, conspiracy, bank fraud, extortion and money laundering.
Scarfo Jr., 49, is the son of Nicodemo Scarfo, a reputed mob boss in Philadelphia who has been in prison since the mid-1990s.
Prosecutors said Scarfo, of Galloway, New Jersey, and Pelullo, of Philadelphia, used threats of violence and extortion to coerce shareholders of FirstPlus Financial Group Inc to install a board of directors beholden to the pair.
The indictment claimed they used the funds to buy luxury cars, a beach house, a yacht and jewelry in a scheme that began in 2007.
Bank fraud carries the possibility of 30 years in prison and a $1 million fine, while the racketeering, other fraud, conspiracy and obstruction of justice counts carry potential 20-year prison sentences.
Scarfo's sentencing was scheduled for Oct. 22.
Three others were acquitted in the case.
Five other people, including Scarfo's wife, Lisa Murray-Scarfo, already pleaded guilty to charges stemming from the scheme.
Defense attorneys argued that the case did not amount to a criminal conspiracy and at best should have been litigated in a shareholder lawsuit.
Law enforcement officials have used the case to claim that organized crime has evolved from back-alley gangsters to sophisticated financial operators.