Jul 19, 2007 11:50 pm US/Central
Former Police Chief Indicted For Extortion
CBS 2's Mike Parker and the STNG Wire contributed to this report.
CHICAGO (CBS) ―
Federal indictments were handed down for a number of high-profile suspects Thursday.
Former City Council majority leader Ed Vrdolyak was hit with four new counts of wire fraud. Former state police superintendent Donald Snyder is accused of taking thousands of dollars in kickbacks from lobbyists representing companies with major state contracts. And, as CBS 2's Mike Parker reports, the former police chief in Melrose Park faces several charges, including racketeering.
The little western suburb was rocked Thursday night – not only the former police chief, but two current high-ranking police officials are in big trouble with the feds.
Vito Scavo, Melrose Park's top cop from 1995 to 2006 is accused of using the officers in his department to help run his private security company. Scavo is also accused of threatening local businesses such as Navistar and the Cinemark Theater to force them to use his private security.
Scavo is also accused of individual and corporate tax fraud, and improperly compensating police employees who performed personal chores for him with compensatory time off.
By phone Thursday night Scavo had a simple comment: "I can't talk to you now." Then he hung up.
Scavo is facing federal charges of racketeering conspiracy, extortion, obstruction of justice, mail and wire fraud and tax fraud.
But, Scavo still has a lot of friends in town.
"Yeah I'm really surprised," said Scavo friend Tom Abruzzo. "Vito seemed like a standup guy at times. I knew him all my life. I grew up in Melrose Park."
In addition to Scavo six other men have been indicted in connection with the scheme including the current Deputy Chief Gary Montino and a recently promoted police commander.
In a statement issued Thursday night, U.S. Attorney Patrick Fitzgerald says the defendants not only ran the scheme and extorted local businesses, they also told victims and witnesses to lie to investigators.
As part of the alleged conspiracy, Scavo, along with Guy Ric Cervone, former police lieutenant recently promoted to commander, and German Cepeda, former police department janitor and current code enforcement inspector for the village, allegedly obstructed a federal grand jury investigation and tampered with potential witnesses, the release said.
The charges result from a federal investigation of alleged corruption in the village of 22,250 residents that began in the spring of 2005 and became publicly known on Sept. 8, 2005, when law enforcement agents executed search warrants at the police department and offices of one of the private security companies, the release said.
Charges in the indictment returned Thursday include:
-- Scavo, 59: 10 counts of mail or wire fraud, nine counts of filing false individual or corporate federal income tax returns, and one count each of racketeering conspiracy, extortion and obstruction of justice;
-- Montino, 51: one count of racketeering conspiracy and four counts of mail fraud;
-- Caliendo, 64: one count of racketeering conspiracy and seven counts of mail or wire fraud;
-- James Caputo, 63, former deputy police chief who resigned in 2004: four counts of mail or wire fraud;
-- Cervone, 56: two counts of mail fraud and one count of obstruction of justice;
-- Michael Wynn, 53, a part-time police officer: three counts of mail fraud; and
-- Cepeda, 40: one count of extortion.
The indictment seeks forfeiture of alleged criminal proceeds of $1 million from Scavo, Montino and Caliendo; another $1 million from those same three together with Wynn; and $75,000 from Caliendo and Caputo. All seven defendants, who reside in Melrose Park, will be arraigned at a later date in U.S. District Court in Chicago.
Earlier this year, Mario Dal Cerro, who worked private security at a restaurant in Melrose Park, pleaded guilty to witness tampering in connection with the investigation, the release said. He is awaiting sentencing.
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