FBI Hikes Gambino Site Take at $750 Million
By Rhett Pardon
Monday, April 12, 2004
OVERLAND PARK, Kansas – Federal authorities now believe that the Gambino crime family’s online adult business generated $750 million in revenue, XBiz has learned.
XBiz reported last month on new federal indictments alleging that Lexitrans and other shell companies in Overland Park, Kansas, were used to help run adult Internet sites and 900 numbers that advertised free trials but charged customers anyway.
Thousands of adult surfers who thought they were taking a free peek at the sexually explicit material actually were charged $59.99 a month, FBI spokesman James Margolin told XBiz.
“Based on our belief, this is the largest consumer fraud in U.S. history," Margolin said. “The FBI is working with the Federal Trade Commission on the case, and we’re confident the figure will exceed $750 million – the numbers are growing, not shrinking.”
The scheme originally was thought to have bilked customers out of $230 million when the FBI made the indictments Feb. 10.
Lexitrans Inc. was allegedly founded by members of the Gambino family, including Richard Martino, who partnered with Norman Chanes, producer of several low-budget Hollywood movies and an alleged associate of the Gambino organization, to create an informal joint venture with Crescent Publishing Group Inc.
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