Feds investigate offshore betting scheme

Monday, July 17, 2000 | 9:45 a.m.

Federal agents and prosecutors say payoffs and collections are made by members of a Mafia-linked group headed by one of western New York's longtime bookies, Benjamin "Sonny" Nicoletti of Lewiston in Niagara County.

Nicoletti has not been charged, but the U.S. attorney's office has filed papers in U.S. District Court regarding the suspected gambling ring.

"I can't talk about the case beyond what is stated in court papers, but I can tell you, as far as the government concerned, this arrangement is illegal," prosecutor Anthony M. Bruce said. "Bookmaking has been outlawed in New York state. So if you have a bookmaking operation and part of the bookmaking activity takes place in New York state, we would definitely consider that to be illegal activity."

Nicoletti's attorney, Joel L. Daniels, declined to comment on the allegations, except to say that he is aware the FBI is trying to build a bookmaking case against him.

"The investigation is based on allegations that Nicoletti is a member or associate of the Buffalo La Cosa Nostra family and, as such, controls illegal gambling in the Niagara Falls area," FBI Special Agent Robert W. Utz said in court papers. "Nicoletti profits handsomely from this arrangement."

Law enforcement officials believe the 1-800 ring allegedly run by Nicoletti has been in operation since at least 1997 and takes in millions of dollars in sports wagers each year.

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