Assistant District Attorneys Louis O'Neill and Rahul Kale will be in charge of the indictment and arrest of nine individuals and four companies on racketeering charges in the theft of $27.7 million from distressed businesses.

NEW YORK COUNTY, 16 October 2002 - Manhattan District Attorney Robert M. Morgenthau announced today the indictment and arrest of nine individuals and four companies on racketeering charges in the theft of $27.7 million from distressed businesses that were either being liquidated in bankruptcy or otherwise restructured.

Joined by New York City Police Commissioner Raymond Kelly, Mr. Morgenthau announced the unsealing of the 82-count indictment that charges the defendants with Enterprise Corruption, grand larceny, possession of stolen property, falsifying business records, commercial bribery, insurance fraud, false filings, antitrust violations and perjury. Enterprise Corruption is a class B felony which is punishable by up to 25 years in prison.

Charged in the indictment are MICHAEL J. SHERMAN and his associate, OLEG OSTROFSKY, and FRANK CARONE a/k/a FRANKI BARI and his associates, RICHARD CIAPPINA, ANTON MAYER, JEFFREY KUNKLE, NICHOLAS CARONE, FRANK CARONE, JR., and MICHAEL YANCOFSKI. Also charged are SHERMAN'S company, MJS ASSOCIATES, and CARONE'S companies, CONSOLIDATED AUCTIONEERS & LIQUIDATORS, INC. ("C.A.L.I."), PRINCE MARKETING & MANAGEMENT GROUP, LTD., and BARI RESTAURANT & PIZZERIA EQUIPMENT CORP.

The case was presented to the Grand Jury and will be prosecuted by Special Prosecutions Burea Assistant District Attorneys Rahul Kale and Louis O'Neill under the supervision of Bureau Chief Leroy Frazer.

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