Folco and Lato have admitted running the ring and are serving federal prison terms. The two men were overheard discussing the loans by FBI agents and state police who had, with court permission, bugged Folco's home and tapped his telephone. In June 1995, FBI agents and state troopers, executing a search warrant, seized a variety of weapons from Perrotta's house and car, including brass knuckles, a billy club, and several firearms. Perrotta was convicted of conspiring with Folco to make extortionate extensions of credit, advancing money to be used in extortionate extensions of credit, and aiding and abetting Folco in making an extortionate extension of credit. Twelve plead guilty Twelve defendants, including Folco and Lato , have pled guilty to charges contained in three related indictments that were returned in March 1999.
Charges are pending against one defendant.
The investigation leading up to the indictments were conducted by the Federal Bureau of Investigation, Rhode Island State Police, and Providence Police. The cases are being prosecuted by Assistant U.S. Attorneys Leavey and Edwin J. Gale.