Salvatore LoCascio, born on July 21, 1958, was a prominent figure within the New York–based Gambino crime family. Known for sharp business instincts and strategic thinking, he rose to the rank of caporegime. His influence was reinforced by his father, Frank LoCascio, who served as acting underboss and later acting consigliere under John Gotti.

Early Life and Business Beginnings

LoCascio grew up in Eastchester, New York, where exposure to organized crime shaped his early years. In 1985, following his wedding, he launched his first legitimate business using $115,000 in wedding gifts.

The venture, Creative Program Communications, Incorporated, marked his entry into telecommunications and marketing. Though legitimate on the surface, it laid the groundwork for later involvement in 900-number hotlines, psychic services, and sports information lines.

Arrest and Charges in the 1990s

In 1998, LoCascio and Gambino associate Michael “Mikey Scars” DiLeonardo were arrested for attempting to extort payments from the Manhattan strip club Scores.

Due to limited evidence, prosecutors dropped extortion charges in exchange for a guilty plea to tax evasion related to illegal gambling income. LoCascio was sentenced to ten months, partially under home confinement, and fined $1.5 million.

The Rise of a Massive Consumer Fraud Operation

During home confinement, LoCascio laid the groundwork for what would become one of the largest consumer fraud schemes in U.S. history.

Working with Richard “Richie” Martino, he developed deceptive adult websites that falsely claimed credit cards were required only for age verification. Instead, users were charged recurring fees ranging from $25 to $75.

Phone Cramming and Telecom Fraud

The operation expanded into phone billing fraud known as cramming, placing unauthorized charges on consumer phone bills via third-party billing company USP&C.

Small recurring charges often went unnoticed, allowing the scheme to generate hundreds of millions before federal scrutiny intensified.

Federal Investigation and Arrests

By 2004, investigators estimated the phone cramming scheme generated $500 million, while fraudulent website charges added $230 million.

LoCascio was sentenced to two years in federal prison and released in 2008. Investigators cited luxury properties and extravagant spending funded by illegal profits.

Indicted Co-Conspirators

• Norman Chanes – Head of Harvest Advertising
• Richard Chew – Former CEO of Crescent Publishing Group

Prosecutors described a network of shell corporations and offshore accounts used to conceal fraud proceeds.

The Mob’s Adaptation to the Digital Age

The LoCascio-Martino schemes showed how organized crime shifted from violence-based rackets to complex financial fraud.

Surveillance recordings captured John Gotti praising Martino’s intelligence and adaptability—foreshadowing the scale of the frauds that followed.

Legacy and Aftermath

Though no longer active, Salvatore LoCascio’s legacy remains tied to one of the largest white-collar crime cases in American history. The case highlights the evolving threat of digital fraud and the adaptability of organized crime.