TRENTON — Attorney General Jennifer Davenport, the Division of Criminal Justice (DCJ), and the New Jersey State Police (NJSP) announced that eight people today admitted their roles in a racketeering, gambling, and money laundering operation. Between October 2025 and June 2026, 27 other people have previously pleaded guilty with respect to their conduct in the gambling enterprise.
The defendants were among 42 people who have been indicted since the initial arrests in April 2025 following a two-year investigation into illegal gambling, loansharking, extortion, and money laundering tied to the Lucchese crime family.
“The guilty pleas we accepted today represent another important step in dismantling this criminal enterprise and holding the individuals involved accountable,” said Attorney General Davenport. “Organized crime has no place in New Jersey. For decades, the Attorney General’s Office has been a leader in rooting out organized crime in New Jersey, and we continue to play that important role to keep New Jersey safe.”
“We remain dedicated to pursuing justice and protecting the public by disrupting criminal enterprises wherever they operate,” said DCJ Director Theresa L. Hilton. “The pleas in this case mark significant progress, but our work will continue as the remaining cases move through the judicial process.”
“By pleading guilty, the defendants have formally accepted responsibility for participating in a criminal enterprise that caused significant harm to individuals and communities,” said Jeanne Hengemuhle, Acting Superintendent of the New Jersey State Police. “Illegal gambling operations exploit vulnerable people, money laundering fuels further criminal activity, and racketeering networks undermine the safety and stability of our neighborhoods. This outcome is a direct result of the exceptional work of State Police detectives, whose ability to trace the financial trails, uncover the enterprise’s structure, and follow the evidence wherever it led built a comprehensive and compelling case. Their work not only brought those responsible to justice but also reinforces our ongoing commitment to protecting the public and safeguarding the integrity of our communities.”
The defendants pleaded guilty before Superior Court Judge Ralph E. Amirata in Morris County to their respective roles in operating illegal poker games and an online sportsbook in association with the Lucchese crime family.
According to documents filed in this case and statements made in court, the gambling operations include social clubs that housed live poker games and gambling machines, as well as an extensive online sportsbook operated through several websites based outside of the United States. Each poker club was operated by high-level managers who delegated day-to-day operations to managers who were present during poker games. Managers collected monetary dues called “rent” from poker hosts for permitting the games to occur and oversaw employees who worked in the clubs. Poker hosts were responsible for recruiting their own players, supplying food and drink for the games, and financially staking the game. The host, also known as the “house,” made a profit off the games because the dealer took a percentage of the monies bet by the players as a profit for the house for each hand played (also known as a “rake”). The dealers were paid by the hosts or were working off a prior gambling debt owed to the hosts of the game. The clubs also housed gambling machines that players could use while waiting for a seat at a live poker game.
The online sportsbook was operated by “agents” — who, before the advent of computerized betting, would have been known as “bookies” – who created accounts on sports gambling websites based in foreign countries. These agents managed “packages” – groups of individual bettors. Sub-agents and agents were responsible for the gambling winnings and losses of bettors in their packages and kicked up a portion of the criminal proceeds to the high-level management of the enterprise. The high-level management made operational decisions, settled disputes, and used threats to collect overdue debts. The enterprise also used websites to facilitate illegal online sports betting. The websites, through the individuals that own, operate, and control them, are one part of this criminal enterprise controlling illegal gambling activities in northern New Jersey and other areas. The websites allow traditional organized crime members and associates to use the internet and current technology to engage in the same criminal acts that traditional organized crime has engaged in since the 19th century.
The leadership of the New Jersey-based faction of the Lucchese family allegedly oversaw the gambling activities and received a portion of the criminal proceeds. The investigation resulted in the identification of $4.79 million in suspected criminal proceeds. Members of the criminal enterprise used multiple shell corporations and legitimate businesses to conceal their illegal gambling proceeds.
George Zappola, Joseph R. Perna, and John G. Perna are high-level managers of the criminal enterprise and allegedly members of the Lucchese Crime Family. All three pleaded guilty to second-degree racketeering in exchange for recommended sentences of seven years in state prison.
The guilty pleas today included the following:
- Wayne D. Cross, a Lucchese associate, pleaded guilty to third-degree promoting gambling in exchange for a recommended sentence of five years in state prison.
- Michael P. Frasso, 48, of Cedar Grove, New Jersey was a sportsbook agent and pleaded guilty to second-degree racketeering (seven years recommended), third-degree failure to pay income tax (three years recommended), and third-degree corporate misconduct (five years recommended), for an aggregate recommendation of 15 years.
- Frank Imparato, 46, of Saddle Brook, New Jersey was a poker club manager and pleaded guilty to third-degree conspiracy (four years recommended).
- Joseph Gossweiler, 41, of Florham Park, New Jersey was a sportsbook sub-agent/poker club manager and pleaded guilty to third-degree conspiracy to promote gambling in the third degree (364 days probation recommended)
- Peter Norcia, 50, of Toms River, New Jersey, was an agent on the sportsbook and pleaded guilty to third-degree conspiracy to promote gambling (four years recommended).
- Café Gio was a corporation used by Frank Imparato to facilitate illegal gambling and pleaded guilty to second-degree conspiracy (penalty of $250,000).
- Frasso Trucking was a corporation used by Michael and Gerard Frasso to conceal gambling proceeds and pleaded guilty to second-degree conspiracy for anti-money laundering profiteering (penalty of $250,000).
- CJW Development and Consulting was a corporation used by Wayne Cross to conceal gambling proceeds and pleaded guilty to second-degree conspiracy for anti-money laundering profiteering (penalty of $250,000).
Charges are still pending against seven remaining defendants, and they are presumed innocent unless and until proven guilty in a court of law.
Deputy Attorney General Heather Hausleben is prosecuting the case for DCJ. The case was investigated by Detective Sergeant Michael Gallant of the New Jersey State Police. Attorney General Davenport thanked the FBI New Jersey – Newark and Red Bank, FBI New York City, U.S. Marshals, Federal Probation, and the Department of Corrections Special Operations Group for their valuable contributions to the investigation.
