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Alleged Gambino ‘Family’ Member Convicted in Record Industry Probe

April 9, 1988

LOS ANGELES (AP) _ A federal judge on Friday convicted reputed mobster Salvatore Pisello of two counts of income tax evasion stemming from an investigation of the businessman’s activities at MCA Records.

U.S. District Judge William J. Rea rejected claims that $309,000 that Pisello, 64, failed to report on his 1984 and 1985 returns should not be counted as income. Pisello contended the funds were loans or advances.

Rea, who heard the case without a jury, set sentencing for May 9. Pisello remained free on a $50,000 bond.

Federal prosecutor Marvin Rudnick said Pisello, an alleged associate of New York’s Gambino crime family, faces up to 10 years in prison and a $200,000 fine.

According to evidence at trial, Pisello, who acted as an independent record consultant, negotiated deals worth hundreds of thousands of dollars for MCA, where he had been put in charge of sales of discount records.

The charges against him stemmed from a federal investigation of abuses in the sales of ″cutout,″ or discounted, records.

Witnesses testified that Pisello demanded cash payments for himself in addition to checks that would be written to MCA for the cutout records.

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