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RINGLEADER PLEADS GUILTY TO RACKETEERING AND MONEY LAUNDERING CHARGES

RINGLEADER PLEADS GUILTY TO RACKETEERING AND MONEY LAUNDERING CHARGES
 BOSTON, Oct. 21 /PRNewswire/ -- The ringleader of a group of sixteen persons charged with stealing computer products from the Digital Equipment Corporation, reselling those goods in interstate commerce, and laundering the money through an attorney and a bookkeeper in Massachusetts, pled guilty today on the twenty second day of his trial to racketeering and money laundering charges.
 U.S. Attorney A. John Pappalardo announced that Philip Mario Carnovale pled guilty today before U.S. District Judge Douglas P. Woodlock to one count of participation in a racketeering enterprise, in violation of 18 U.S.C. S1962(c) and six counts of money laundering, in violation of 18 U.S.C. S1956(a)(1)(A). These charges each carry a maximum term of imprisonment of 20 years and a fine of $250,000.
 According to evidence that has been introduced at the trial, Carnovale, along with Edward F. Desmond, masterminded a group of at least sixteen persons who embarked in January 1989 on a multi million dollar scheme to steal computer boards and products from the Digital Equipment Corporation and to launder the proceeds from the sales of those stolen products. These persons included two employees of Digital Equipment Corporation, two persons formerly employed at Digital warehouses, an accountant in Charlestown, a real estate agent in Boston, and the owner of a bookkeeping service in Boston. The scheme involved the bribery of DEC employees to allow access to DEC warehouses, the bribery of DEC employees, including the Warehouse Supervisor of DEC's Athol warehouse, to steal DEC products, the positioning of one defendant as an employee of a security company so that he would be in charge of plant security at DEC's Athol plant on the weekends and thus be in a position to allow other defendants to enter the plant and steal DEC's products, and the theft from DEC's warehouse in Athol, Mass. of products on a daily basis from early 1989 through June 1990. The defendants shipped the stolen products by air freight and tractor trailer to California and elsewhere and earned more than six million dollars ($6,000,000).
 As a part of a plea agreement reached with the U.S. Attorney, Carnovale will forfeit three automobiles, $60,000 and the investment stock and the assets of the "The China Grill". At sentencing, the United States Attorney will recommend 108 months incarceration. Mr. Carnovale is the ninth person to plead guilty. Last week, on the eighteenth day of the trial, Jack McComas, a former employee of California Boards, entered pleas of guilty to two charges of racketeering and two counts of interstate transportation of stolen property.
 The case has been investigated by Special Agents of the Federal Bureau of Investigation and Special Agents of the Criminal Investigations Division of the Internal Revenue Service. Digital Equipment Corporation provided assistance during the investigation. The case has been prosecuted by Assistant U.S. Attorney Michael K. Loucks.
 -0- 10/21/92
 /CONTACT: Press Officer, U.S. Attorney's Office, 617-223-9445/ CO: ST: Massachusetts IN: SU:


CH -- NE023 -- 3169 10/21/92 17:44 EDT
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Publication:PR Newswire
Date:Oct 21, 1992
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