Wednesday, May 11, 2011

Mob Wives: Joseph Ferragamo, Carla’s Husband


Boiler Room Scheme

"An unflattering term used to describe a fraud scheme in which salespeople are hired to call unsuspecting individuals and push investment opportunities.  These high-pressured calls are often used to pitch worthless or nonexistent securities.  These operations typically consist of only a large number of telephones in a single room, giving rise to their name."  Click here to read more.
Carla likes to dismiss her soon to be ex-husband’s criminal activity as something minor. She doesn’t consider “stock fraud” a crime. I don’t know how she can say that with a straight face. By the time the show aired on VH1, Joey had already spent several years in jail. The facts of his fraudulent stock practices were well known, documented and presented in court and to the Security and Exchange Commission. What bothers me is that she may be living on money that has been allegedly stolen from many senior citizens and other people, innocent vicitms, who put their trust and life savings into the hands of their stock broker, Joseph Ferragamo.

Joe Ferragamo was been a very busy man prior to being sent to prison. I do not know how many court documents I have found pertaining to his “stock fraud.” It is hard to even put together a coherent, chronological history of his activities. The reason for this is that from 1997 to 2001 (4 years), he worked for 6 different securities firms. I am going to do the best I can to share some of what I have learned.

Here is a pieced together, partial resume, as far as I can determine (dates approximate):

12/1999 - 5/2000 - Worked for LH Ross & Co. Inc - Allegedly received Kickbacks

7/2000 - 7/2001 - Worked for Valley Forge - 2 counts Security fraud

8/2001 - 4/2002 - Worked for Yankee - Laundering money on stock deals

According to the US Security and Exchange Commission documents, a default judgment was made against Joseph Ferragamo, along with other brokers of LH Ross & Co, for allegedly violating federal security laws. Investors reportedly lost 26 million dollars in a huge broker bribery scheme involving 9 public companies. Brokers allegedly received kickbacks based on sales. Ferragamo was considered a “big producer” and therefore reportedly received 25% in kickbacks from the stocks his clients purchased. Ferragamo’s clients allegedly purchased more than 67,550 shares of stock for $606,000. He reportedly never told customers that he was receiving 25% from the sale proceeds.

Ferragamo moved on to Valley Forge Securities and, around December 2000, he took over management of the Staten Island office. There he allegedly mislead customers about the value and stability of stock. He is said to have manipulated stock and the receipt and payout of kickbacks. In January 2001, he moved his office to Maiden Lane in Manhattan. Axxess International credit cards, linked to Bahamian accounts, were issued and kickbacks were deposited to hide illegally monies from the stock manipulation scheme. Federal Prosecutors issued indictments that the Valley Forge NYC Office was allegedly controlled by organized crime figures.

In August, 2001, he met with the head of Yankee Financial, Mr. Kresge. He told him he wanted to leave Valley Forge. By October 2001, a new Yankee office was opened in Brooklyn, with seven employees, and Ferragamo was put in charge as part owner. From October, 2001 to April, 2002, ten Yankee customers, all senior citizens, invested their money based on misrepresentations and omissions. The stocks recommended were not in the best interest of the clients. This was a high-pressure, boiler-room type operation. The brokers used high pressure sales tactics, fraudulent misrepresentations, false price predictions, and left out material facts when talking senior citizens into investing in three risky stocks. As of March, 2004, the ten customers still had losses of $3,866,426. The boiler-room operation reportedly took 17 million from senior citizens by making them invest in worthless companies whose bank accounts had only $120.

On May, 19, 2004, concerning his Valley Forge scheme, Ferragamo pleaded guilty to one count of money laundering in the 3rd degree and admitted to withdrawing $556,000 from his foreign account. It seems, from the research, that Ferragamo admitted to laundering over $500,000 in kickbacks that he received from security fraud transactions. He deposited the money in a bank in the Bahamas, called Lendenhall. Then, between February, 2001 and September, 2001 he used his Mastercard, from that bank, to make cash advances in $1,000 increments. He allegedly repaid the cash advances with the kickback money in the Lendenhall account. He paid no taxes on his Bahamian money.

I have to wonder what those poor senior citizens are eating and how they are living while Carla is out on the town with friends, paying her gym membership, buying sleeveless furs, countless shoes and starting up a clothing line with their money? Is she squandering their hard earned money? If so she has no qualms or guilty conscience about doing it. Her mother’s attitude is that it’s no “big deal.”

Considering Carla’s mother is a senior citizen herself, you would think she might have some empathy for her elderly peers. But then again, I’m sure she has gotten some very nice birthday and Christmas gifts out of it over the years. So, like she said, it’s no big deal.


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24 comments:

Mob Mistress said...

So, you know I was waiting for this one Chiara. It is a crime to scam people out of money period. I get that some of are the opinion if you fall for a con it's your fault. If you get a stranger e-mailing telling you they want to give you $2,300,000 for $900, YES it's your fault.

Now enlisting the help of a stock broker or recieving a call from one is a different story. We all know (or we all should know) the elderly often are more vulnerable to crimes for a plethora of reasons. So, I think it's really low down to allegedly seek them out to suck them of their hard earned money. Money they depend on taking care of them until their death. Unlike younger folks the elderly are really unable to bounce back.

jnettemarie said...

I think his actions are deplorable. And you know that's how she's affording this lifestyle. She knows it's wrong too or she would feel the need to defend his crimes so much.

Carla may have been able to skirt around this issue to make her morally corrupt husband seem less liek a scumbag. And it's obviously worked in her favor but Karma likes to sneak up on those who gain at the expense of others. So Watch out, cause it will come getcha!

Chiara Soprano said...

Absolutely love your comments Jnette. How the hell can she look at her mother and not feel bad for all those senior citizens? It makes me sick.

jnettemarie said...

http://www.tmz.com/2011/05/11/bethenny-frankel-sued-lawsuit-skinnygirl-managers-real-housewives-of-new-york/

Ya see what happens to greedy people. I posted how Bethany was a head of the game when she started RHONY but I'm not a fan of hers. She may have started out as an ambitious career driven entrepreneur but she's turned into a cross between Leona Helmsley and Martha Stewart.

jnettemarie said...

Thought I post the court document too.

http://www.radaronline.com/sites/radaronline.com/files/rawtalentredactC.pdf

jnettemarie said...

Am I losing my mind...Cause in my google reader the post about sammy is there, when I click on the title it comes up that this site doesn't exist, and when I come directly here the post in not here. by the way, he was dreamy in his day. Those eyes and smile, oh la la. Yea he was a bad boy, but mommy loves her some bad ass once in a while. What he did later in life mimicks his looks as he got older. He may have escaped the judicial system, but the day will come when he'll have to dance with the devil for what he did.

Mob Mistress said...

Jeanette you are cracking me up. I adore you. I was testing something. There is a Salvatore Gravano post scheduled for tomorrow. However, the preview was not working for me. So to in order to align it a specific way I need to publish it, then edit it and schedule it for first thing tomorrow. I did the same did to Chiara the other day. She couldn't figure out why her comment wouldn't go through.


I apologize.

Anonymous said...

I really frel bad for the old people and she should get punished to im sure she knew,what he was doing.

Anonymous said...

On tonight's show Carla said she met Joe while they both worked at the same brokerage office and that she told him he was doing it all wrong. She said she was his sales assistant I think. If she was, then she was totally aware of what he was doing. Further, she said they fired her at the same time they fired Joe. It sounds to me like she may have been somehow involved with the stock fraud as well.

Chiara Soprano said...

Anonymous, the same thoughts ran through my mind, the exact sae thoughts! Thanks for posting.

Anonymous said...

Thank you for this web site. I enjoy the show, but it's easy to forget that behind these women are some really bad men.

Anonymous said...
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crusaderlover said...

Can you guys help me? Drita's dad is supposed a well known college football coach, does anyone know which one? I am very curious

Chiara Soprano said...

Crusader, Drita's Dad is a women's soccer coach at Fordham University in NYC and his name is Ness Selmani. There is a blog on him if you use the search feature it will take you there.

oxymoron said...

Seriously........That chick does not have a second of peace...she knows shes navel crud.

vickieetooria said...

I have to say Joe would definetly fall in the category of a mobster. Lee,robbing banks and atms...hmmm he's like nothin compared to Joe

Anonymous said...

Can we let go of the gym memberships LOL? They are hardly a luxury!! I cough up a gym membership to keep my ass in shape; not because I am rich!! Clearly Joe has one and he should keep it if it keeps him looking that good!! Of course any criminal activity is wrong, but the guy is totally hot....

Mob Mistress said...

Neither Joseph or Lee are considered mobsters.

Gym memberships are a luxury. Luxuries are not exclusive to rich people.

Anonymous said...

I think it is an atrocity that Carla is living off the hard earned money of innocent people trying to invest to better their future. Her ex-husband is just as bad as all the Wall Street scum. In my opinion he is worse than a gangster or mobster. Back in the day there was always a code the mafia had: they never sold drugs, especially to women and children, never went after cops or lawmen and never harmed innocent civilians. It seems that this new generation of mobsters if you can even call them that have no loyalty or code. I think Carla should be prosecuted or at least someone should make an anonymous call to the IRS and have her earnings audited. I don't know how she is raising her kids but I am sure they are going to grow up to be no good, no conscience, bad people just like Carla. She should be ashamed of herself!!!

Anonymous said...

You know...everyone deserves a second chance...he done his time..yes what he did 6 yrs ago was wrong....and so was the men in suits running the banks that brought the United States financial system to a low,and guess what? Our president gave them lush jobs paid for by us the tax payers,they all have vacation homes from scammed money..so to me Joe seems like hes a great dad,and is trying to pick up his life and live right-waving figures and constantly doubting them,wont have the right outcome,more encouragment will show better results!

Mob Mistress said...

Oh the ridiculousness! Joseph is a convicted criminal. He knowing defrauded individuals out of their money. He is no saint. I don't need a second chance. I just don't steal from others. I hope Joseph is rebuilding his life and no longer breaking the law. I don't know him nor monitor him 24/7 to tell you what in the hell he's doing on a regular basis.

_Nikki_Chikki said...

Sure they were in it together ,..same as they are now with this "creditrcarddebt" crap their BOTH posting on twitter now ... excellent Blog btw ladies ! _nikki_chikki

Anonymous said...

How about the. Feds/confiscateing that house . Sell it. And give. The money. To the seniors. I am a. Senior myself. That would be the right. Thing to do. She needs to have. Her assets frozen. I told my. Grandaughter I didn't. like. Her. She has beeby eyes.






pinkie87825 said...

to anonymous and chiara...i thought the exact same thing. dumb women dont work on the stock exchange...she new that his crime is indeed a crime and she is living still off the proceeds of his crimes as long as she lives in the house it helped pay for..i loved the description Love gave of Carla twisting her hair and giggling..that same look i have seen vicious women use as a cover to convey innocence when it could be nothing further from it...