Three Men Indicted on Gambling and Money Laundering Charges
|U.S. Attorney’s Office June 25, 2014|
ROCHESTER, NY—U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury in Rochester has returned a 23-count indictment charging Paul Borrelli, 66, and Joseph Ruff, 32, both of Rochester, N.Y., and Mark Ruff, 40, of Connecticut, with conducting an illegal gambling business.
The indictment also charges Borrelli with 12 counts of money laundering, two counts involving the deposit of gambling proceeds into business accounts held by two Rochester companies to conceal the nature of gambling proceeds, and 10 counts of conducting financial transactions affecting interstate commerce which involved over $10,000 of proceeds of illegal gambling activity. Joseph Ruff was charged with 10 counts of money laundering, three counts of involving the deposit of gambling proceeds into specified bank accounts in order to conceal the nature of the gambling proceeds, and 10 counts of conducting financial transactions affecting interstate commerce which involved over $10,000 of proceeds of illegal gambling activity.
If convicted of the illegal gambling offense, the defendants face a maximum sentence of five years in prison, and a $250,000 fine. If convicted of the money laundering charges, Paul Borrelli and Joseph Ruff face a maximum sentence up to 20 years in prison and a $500,000 fine. Additionally, the defendants would be required to forfeit $76 million in United States currency, the sum of money equal to the total amount of gross wagers involved in the illegal gambling business, six bank accounts, three real properties and a vehicle.
Assistant U.S. Attorney Robert A. Marangola, who is handling the case, stated that according to the indictment, since January 2012, Borrelli, Joseph Ruff, and Mark Ruff have conducted an illegal gambling business involving sports betting which utilized multiple offshore Internet gambling websites. The defendants provided betters with an account and password that permitted them to place wagers on various sporting events over the websites. The websites provide the “line” and tallied the total won or lost by the bettors. The cash payments to settle wagers generally occurred at face-face meetings, drop offs at residences or the Marina Bar (owned and managed by Borrelli and Joseph Ruff), FedEx deliveries, and bank deposits.
Borrelli was arrested at his residence at 31B Veldor Park in the City of Rochester, and Joseph Ruff was arrested today at his residence at 360 Edgemere Drive, a lakefront residence on Lake Ontario. Coinciding with their arrests this morning, federal search warrants were executed at each of their residences. During the searches, law enforcement seized over $80,000 in gambling proceeds secreted in various locations.
Borrelli and Joseph Ruff were arraigned this afternoon before Magistrate Judge Marian W. Payson and released on their own recognizance. They are due back in court on July 1, 2014.
An arrest warrant has been issued for Mark Ruff.
The indictment is the culmination of an investigation conducted by the Organized Crime Drug Enforcement Task Force, which included the Monroe County District Attorney’s Office, under the direction of District Attorney Sandra Doorley, Federal Bureau of Investigation, Internal Revenue Service, under the direction of Shantelle P. Kitchen, Acting Special Agent in Charge, New York Field Office, Rochester Police Department, under the direction of Chief Michael Ciminelli, Drug Enforcement Administration, under the direction of Acting Special Agent in Charge James J. Hunt, New York Field Division, Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent in Charge Thomas J. Cannon, New York Field Division, Greece Police Department, under the direction of Chief Patrick Phelan, and the Webster Police Department, under the direction of Chief Gerald Pickering.
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