Neil Cremin

New York City School Bus Inspector Sentenced for Role in Scheme

School busMilton Smith is headed for prison. And his sentencing marks the conclusion of a Mafia-backed scheme dating back to the mid-Nineties that used members of a bus drivers union to steal from the New York City school system and affiliated contractors. On February 11, Smith, a former city bus inspector, received a sentence of 15 months in U.S. District Court for the Southern District of New York for extortion and bribe-taking. The actions were in relation to a federally-subsidized special education program. He also will have to serve three years of supervised release and pay $21,000 in restitution. The maypole of the scam, Local 1181 of the Amalgamated Transit Union, since has undergone a leadership change following a trusteeship imposed by union headquarters.

Former Board Members-Trustees of NYC Transit Union Plead Guilty

School busWhen they weren't serving in their capacity as union officials, Nicholas and Paul Maddalone shook down bus company owners. Now they're set to join several partners in prison. The Maddalone brothers, formerly board members and assistant trustees of Amalgamated Transit Union Local 1181 in Queens, N.Y., on September 10 pleaded guilty in U.S. District Court for the Southern District of New York on various extortion and bribery charges. They allegedly had obtained tens of thousands of dollars in coerced payoffs related to a federally-subsidized program for special education students in the New York City public school system.

NYC School Bus Inspectors Sentenced, Union Officials Indicted in Bribery Scam

School busEven with the Genovese crime family less overtly in the driver's seat, Local 1181 of the Amalgamated Transit Union hasn't been entirely clean. But the union's legacy of corruption recently received a major blow in Manhattan federal court with a round of criminal actions. On May 26, Neil Cremin, a former New York City Department of Education (DOE) school bus inspector, was sentenced in U.S. District Court for the Southern District of New York to four months of incarceration to be followed by four months of home confinement and ordered to make $30,000 in restitution to the DOE. Some two weeks later on June 8, George Ortiz, a former DOE school bus inspector, was sentenced to two and a half years in prison to be followed by two years of supervised release and ordered to make restitution of $5,000. Each had been accused of extorting and/or accepting bribes. Between these actions, brothers Nicholas and Paul Maddalone, former board members and assistant trustees of the Queens, N.Y.-based Local 1181, which represents about 15,000 New York City school bus drivers, mechanics and escorts, were indicted on June 1 for extortion, unlawful payments and conspiracy to commit bribery.

New York City School Bus Inspectors Plead Guilty

School busLocal 1181 of the Amalgamated Transit Union (ATU) in Queens, N.Y. for years had been in the pockets of the Genovese crime family until the union's leaders were brought down by federal racketeering charges a few years ago. And even after the parent union placed the local under trusteeship, there was some additional cleaning up to do. Last spring, four New York City school bus inspectors and supervisors were indicted for various acts of extortion, bribery and bribe-taking going back to the mid Nineties. Neil Cremin, Ira Sokol, George Ortiz and Milton Smith at the time pleaded not guilty. But the evidence against them was too strong. On February 6, Cremin and Sokol pleaded guilty in U.S. District Court for the Southern District of New York to receiving bribes; Ortiz and Smith pleaded guilty in the same court to extortion and receiving bribes.

NYC School Bus Inspectors Charged with Extortion, Bribe-Taking

Local 1181 of the Amalgamated Transit Union in Queens, N.Y. long had operated as a subsidiary of the Genovese crime family before its leaders were taken down on racketeering charges by federal prosecutors a couple of years ago.  Local President Salvatore Battaglia, Secretary-Treasurer Julius Bernstein, and benefits manager Ann Chiarovano either had been convicted by a jury or entered a guilty plea.  One-time acting Genovese boss Matty “the Horse” Ianniello also went down.  Late in 2006 ATU International President Warren George placed the local under temporary trusteeship.  Yet there was some unfinished business.  On May 13, four New York City school bus inspectors and supervisors – Neil Cremin, George Ortiz (retired), Milton Smith, and Ira Sokol – were arraigned in Manhattan federal court following the unsealing of indictments against them for acts of extortion, bribery and bribe-taking going back to the mid Nineties and totaling at least $1 million.

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