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The next episode dramatized how mob-connected loansharks can be aided and abetted by mob-influenced check cashers. The victim was Frank Terlizzi of Brick Town, a self-employed plumber and sprinkler installer, who testified that during 1984-85 he borrowed $60,000 from the brothers Frank and Richard Vonella of Monmouth County. The Vonellas were identified at the hearing by the SCI's organized crime intelligence chief, Justin Dintino, as Genovese organized crime family associates (Richard Vonella subsequent to the loan was jailed on a narcotics conviction). Terlizzi, whose businesses included Rosie Lee and Rosie T Construction companies, testified under questioning by Counsel Carol L. Hoekje that in mid-1984 he needed cash to keep operating:
Q. Did you experience some cash flow problems with your business?
Q. Were you at that time introduced to a Mr. Frank Vonella?
Q. Did Mr. Frank Vonella promise to help you out?
Q. In terms of obtaining financial help?
Q. Didn't you also ... receive a loan of money?
Q. How much did you receive? Q. And how did you receive this money?
Q. Didn't you receive it in two installments?
Q. And were those cash?
Q. And who actually gave you the money? Q. Who is Richard Vonella?
Q. Does Frank Vonella have a nickname and is that nickname Speed?
Q. After receiving this loan did you have additional cash flow problems with your business?
Q. Who introduced you to the idea of using a check casher?
Q. And did you, in fact, use a check casher to pay back most of the loan?
Terlizzi said his first transaction at a check casher, consisting of checks for $2,700 and $6,000, were handled by Frank Vonella, who took them to Bayonne and "got them cashed [by] a guy named Gallagher . . ." This reference was to Genovese crime family associate Anthony Gallagher of Bayonne, an ally of the Hudson County Genovese crime family boss John DiGilio, who subseqently was slain in May, 1988. Gallagher, who was scheduled as a later witness, is a selfproclaimed "unlicensed" check casher, who was convicted just prior to the SCI hearing of federal racketeering charges in Newark. DiGilio, a convicted loanshark and a fellow defendant with Gallagher, was acquitted of the same federal charges. It was obvious from Terlizzi's testimony that Frank Vonella was accustomed to dealing through Gallagher. If Gallagher didn't cash the $2,700 and $6,000 checks, as Terlizzi claimed, Counsel Hoekje wanted to know who did:
Q. Do you know where the checks ended up?
Q. And who runs North Avenue East?
Q. And did you subsequently use Mr. Siegel to cash many checks?
Q. Now, how did you meet Anthony Gallagher?
Q. And was there a time when you went up to Mr. Gallagher's to cash a check? At Mr. Vonella's directions as to where to go at that time?
Q. And do you recall where you went?
Q. And was that the first place you went to, Mr.
Gallagher at 809 Broadway in Bayonne?
Q. Mr. Terlizzi, at the time that you testified before the Commission you were asked this question and you gave this answer.
"Question: And did you hear the call?
"Question: What did Gallagher say on his end? Q. And you recollect that you heard that conversation?
Q. And these were checks that your company had received in payment for work that they had done?
Paid Twice For Bounced Checks
Terlizzi said he was informed that his checks for $2,700 and $6,000 had bounced. He testified that, at Gallagher's direction, he brought repayment for the bounced checks to Gallagher, who "gave the money to Siegel to pay off the checks." Terlizzi never was given the bounced checks. However, he identified an SCI exhibit as a check for $6,900 that he had given Siegel. Counsel Hoekje questioned why a $6,000 checking transaction suddenly became a $6,900 transaction:
Q. And what does $900 of that check represent?
Q. And was that interest on the original $6,000 check that you had sent up?
Q. Where Mr. Siegal claimed had bounced and he wanted it back?
Big "Fees" For Bad Checks
In fact, Siegel customarily charged Terlizzi large fees for bounced checks:
... What got me confused when I was giving him checks from my corporation ... [was that] he was taking out all the money I owed him and giving me the difference in cash.
Q. When you cashed your accounts receivable checks with Mr. Siegel did Mr. Siegel charge you a flat rate?
Q. Mr. Terlizzi, when you were presenting checks to Mr. Herb Siegel that actually bounced, did he ask you for a replacement check?
Q. And do you recall what the service charge was for those types of checks?
Q. Do you remember also testifying that you also paid a charge of $300 per check for bounced checks?
Q. And is that accurate testimony?
"Loans" On Post-Dated Checks
Terlizzi was able, for a usurious fee, to get advances on post-dated checks. This tactic of Siegel's actually amounted to loans at loanshark rates. Counsel Hoekje discussed this with the witness:
Q. Did you present checks to Mr. Herb Siegel that were post-dated checks?
Q. And was this the payroll check situation?
Q. Did Mr. Siegel hold the checks for you?
Q. And did the amount of service charge and interest depend upon the length of time he held the check?
Q. Why were you presenting post-dated checks to Mr. Siegel?
CHAIRMAN PATTERSON: So you were really borrowing money from him?
Terlizzi testified that he paid as much as $27,000 in usurious fees to Siegel for cashing his company checks for less than a year during 1984-85. He said he dealt with Siegel because he needed cash in his business, cash to repay the Vonellas and because Siegel threatened him with prosecution:
Q. Now, you testified that you paid various charges to Mr. Herb Siegel and you've also testified that you estimate the amount of money that you paid in charges to Mr. Herb Siegel?
Q. And was that $27,000? Q. Why did you continue to deal with Mr. Siegel if he was charging you such
Q. At the time that you were cashing the checks, Mr. Terlizzi, and paying all the fees, you were pretty desperate, weren't you?
Q. And you needed the money, did you not? Q. Mr. Terlizzi, do you consider yourself a victim of fee gouging?
Q. And have you continued to stay in that financial difficulty?
Commissioner Evenchick asked Terlizzi if he realized he was paying illegal fees:
COMMISSIONER EVENCHICK: You knew that the money that you were paying to him was unlawful –
COMMISSIONER EVENCHICK: – and beyond what he was entitled to, did you not?
Vonellas' Organized Crime Link
The SCI's organized crime intelligence chief, Justin Dintino, pinpointed the mob background of the Vonella brothers, who in consort with check casher Herb Siegel had victimized Terlizzi:
BY COUNSEL GAAL: Q. Are they involved with organized crime and, if so, in what way?
Over thirty years ago, this was how a New York Times writer described New Jersey. The only things that have changed are that now Bloomberg has Lindsay's old job and
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