Investigation Busts Illegal Online Sports Betting Operation

Five Indicted, including a former NYPD officer, for promoting gambling and conspiracy charges after 14-month surveillance operation

After a 14-month investigation by the Nassau County District Attorney’s Office, five people — including a former New York City police officer — have been arrested for running an illegal online sports betting operation.

Investigators discovered that, between September 2023 and April 2024, associates Joseph Pietaro – a former NYPD officer – along with Philip Carucci and Frank LoNigro allegedly operated as runners for the sports book allegedly operated by Anthony Frascone and Anthony Pellegrino, each having multiple bettors under them. Pellegrino allegedly established accounts through a website for the runners with unique usernames and passwords. The runners allegedly used these accounts to access and manage the bets of their bettors, as well as to keep track of their profits, a portion of which they retained and a portion of which were given to Pellegrino.

Pietaro, Carucci, and LoNigro, allegedly also supplied usernames and passwords to bettors, and settled debts with bettors offline, in person. The profits were then allegedly shared with Pellegrino, who was responsible for keeping track of the figures related to the sports book.

Frascone, the alleged leader of the outfit, also kept records of and received a portion of the profits generated from the sports book and, according to the investigation, also shared a portion with other associates in the Bronx.

“These five individuals allegedly operated a sophisticated online sports betting operation in Nassau County, profiting off of hundreds of bets that took place during the 14-month period of our investigation,” said Nassau DA Anne Donnelly. “One bettor alone owed more than $150,000 in debt to this alleged operation, showing the breadth of this illegal book. My office is committed to taking down illegal gambling networks and holding accountable the bookkeepers, runners, and other agents who try to skirt state laws toward their own selfish ends.”

The Nassau DA’s Office determined that hundreds of bets were placed through the alleged illegal gambling operation and runners accepted multiple bets for thousands of dollars during the course of the investigation.

There are a limited number of licenses available in New York State for the operation of legitimate sports books. These licensed sports books are closely scrutinized, operate under strict guidelines from the state, and a portion of their profits are subject to New York State taxes.

Frascone, 75, of East Meadow, was arraigned today before Judge Robert Schwartz on seven counts of Promoting Gambling in the First Degree (a Class E felony); Criminal Usury in the First Degree (a Class C felony); Criminal Usury in the Second Degree (a Class E felony); 54 counts of Promoting Gambling in the Second Degree (a Class A misdemeanor); Conspiracy in the Fourth Degree (a Class E Felony); and Conspiracy in the Fifth Degree (a Class A misdemeanor). He pleaded not guilty and was released on his own recognizance. He is due back in court on December 18, 2024. Frascone faces up to five to 15 years in prison if convicted.

Pellegrino, 59, of Merrick, was arraigned today before Judge Schwartz on seven counts of Promoting Gambling in the First Degree (a Class E felony); Criminal Usury in the First Degree (a Class C felony); Criminal Usury in the Second Degree (a Class E felony); 54 counts of Promoting Gambling in the Second Degree (a Class A misdemeanor); Conspiracy in the Fourth Degree (a Class E felony); and Conspiracy in the Fifth Degree (a Class A misdemeanor). He pleaded not guilty and was released on his own recognizance. He is due back in court on December 19, 2024. Pellegrino faces up to five to 15 years in prison if convicted.

Carucci, 59, of Levittown, was arraigned today before Judge Schwartz on charges of Promoting Gambling in the First Degree  and Possession of Gambling Records in the First Degree (both Class E felonies) and Conspiracy in the Fifth Degree (a Class A misdemeanor). He pleaded not guilty and was released on his own recognizance. He is due back in court on December 18, 2024. Carucci faces up to one to three years in prison if convicted.

Pietaro, 57, of West Islip, was arraigned today before Judge Schwartz on fifty counts of Promoting Gambling in the Second Degree and one count of Conspiracy in the Fifth Degree (both Class A misdemeanors). He pleaded not guilty and was released on his own recognizance. He is due back in court on December 18, 2024. Pietaro faces up to one to three years in prison if convicted.

LoNigro, 51, of Merrick, was arraigned today before Judge Schwartz on six counts of Promoting Gambling in the First Degree (an E felony); one count of Promoting Gambling in the Second Degree and one count of Conspiracy in the Fifth Degree (both Class A misdemeanors).  LoNigro pleaded not guilty and was released on his own recognizance. He is due back in court on December 19, 2024. LoNigro faces up to one to three years in prison if convicted.

In addition to operating the illegal sports book, Pellegrino and Frascone also allegedly engaged in illegal loansharking activities, issuing a usurious loan to at least one individual for thousands of dollars and penalizing him three points, or three percent interest, each week over the life of the loan. The interest rate equates to an annual interest percentage rate of approximately 156%.

Frascone also allegedly received a portion of the interest payments on that loan after payments were made by the victim to Pellegrino.

The defendants all surrendered to NCDA Detective Investigators on November 7, 2024.