Oct 6, 2016 6 min read

A statewide investigative grand jury has recommended charges of protecting an illegal gambling enterprise be filed against an attorney who lives in Peters Township and specializes in liquor license law.

State Attorney General Bruce R. Beemer announced charges against Louis F. Caputo, 39, of Lake Colony Drive, Venetia, grew out of a joint investigation by the attorney general’s organized crime section and the state police Bureau of Criminal Investigations, Western Organized Crime Unit.

Caputo is accused of using his position to aid and protect the illegal gambling enterprise of one of his associates. He is charged with one count each of gambling devices, criminal solicitation/gambling devices and criminal conspiracy.

Caputo appeared Thursday for a preliminary arraignment, waived his right to a preliminary hearing and was released from custody on a nonmonetary bond. A formal arraignment is scheduled for November.

Marc Gergely, 46, of White Oak, a state representative, also was charged in March in connection with the illegal enterprise.

The grand jury reviewed testimony and evidence Caputo assisted in the illegal gambling enterprise headed by Ronald “Porky” Melocchi, according to Beemer.

The grand jury’s 28-page findings of fact point to Caputo as a “perk” of Porky Melocchi “in the sense that he could consult with and advise prospective owners and operators on any legal issues relative to their liquor license and/or the placement of illegal gambling devices within their establishments … Whereas Melocchi might not be able or willing to offer large amounts of money to the owners/operators of prospective (locations) he could introduce them to Gergely and Caputo as a show of strength in terms of the people with whom he had a connection. “

The grand jury’s findings allege Caputo, a liquor license attorney, and Gergely were part of Melocchi’s “Super PAC,” meaning Melocchi had Gergely and Caputo aid him in securing new locations for his illegal video gambling business.

A court-approved wiretap was part of the Melocchi investigation, with investigators presenting transcripts of phone conversations they said shed light on the running and promoting of his illegal business interests.

Intercepted conversations and other evidence reviewed by the grand jury showed Caputo used a connection he had with the state police Bureau of Liquor Control Enforcement to obtain the identity of a person who made a complaint against the owner of Dot’s restaurant and bar in McKeesport.

The information was obtained in an effort by Melocchi, Gergely and Caputo to convince the business owner to put illegal gambling machines in her business in October 2012, the grand jury found.

The findings quote Melocchi saying in a phone conversation, “You know I’m bringing a state representative that’s going to tell her OK to put the (expletive) games in. And the liquor lawyer that controls 75 percent of the liquor licenses in Allegheny. And she’s still scared, (expletive) her, I give up.”

In a transcript of Melocchi’s conversation with his co-defendant Mark Holtzman, a former assistant police chief of McKeesport, Melocchi said, “You’re in my list, you’re in my Super PAC. You, Louie Caputo and Jim Cerqua.” Holtzman replied, “Well, I hope it stays as a Super PAC and doesn’t end up as a super chain gang.”

Trooper Jeff Mermon testified before the grand jury that during the course of the investigation a letter was given to Louis Caputo identifying him as a potential target of the investigation. He said he phoned a friend and obtained the identity of the complainant who turned in the owner of Dot’s restaurant, who ultimately decided not to allow gambling machines in her establishment.

Cerqua, the investigation determined, targeted three bowling alleys owned by Brian Saunier, including one in Canonsburg, as sites for video gambling machines to produce additional revenue.

The findings state, “Melocchi tried to convince Saunier” if redemption tickets were used in connection with winnings, and the tickets were redeemed with “gift cards,” the process would be legal. Saunier testified he questioned whether the process was legitimate, and that “he needed to think about continuing with the machines. Melocchi made it clear that before Saunier decide(d) anything, Melocchi wanted to bring attorney Caputo to meet Saunier and explain everything face to face. Caputo could explain the process involving the machines.

“Saunier testified Caputo reassured (him) that the machines operated like Skee Ball because the machines dispensed redemption tickets and winners were paid off with gift cards rather than cash. Saunier testified that Caputo advised (him) that he would not be considered a ‘gambling parlor’ with only two machines at each location.”

Saunier further told the grand jury he had mixed emotions about the legality of the machines, but he was reassured if there were fines, they would be handled between Melocchi and Caputo, who advised him he would know in advance if the Liquor Control Enforcement agency was investigating because Melocchi had “taken care of the right people.

“Despite Caputo’s assurances to the contrary, 18 days later, on Dec. 11, 2012, Saunier was on a flight to Charlotte when he discovered investigators seized illegal video gambling machines from his bowling centers.”

Melocchi and 15 other individuals were criminally charged in September 2013 by the attorney general’s office. Those charges stemmed from the installation and maintenance of illegal video gambling devices in bars, restaurants and other businesses in the McKeesport area. Law enforcement officials seized more than 330 video gambling machines during the investigation. Illegal lotteries and sports betting also were part of the evidence that investigators uncovered.

Gergely was criminally charged in March. His case is still pending. A trial date has been scheduled for Dec. 5. His district includes McKeesport, Clairton, Munhall and several other communities.

The Caputo Law Office website identifies Louis F. Caputo as a partner who practices in the areas of beverage alcohol law, municipal law, governmental relations, labor law, business and corporate law, along with general litigation.

It says he acts as special counsel to the Pittsburgh Water and Sewer Authority, handling all statutory appeals from decisions of the Authority’s Water Exoneration Board and other litigation. Caputo obtained both his undergraduate and law degrees from Duquesne University.

A call to his office voicemail was not immediately returned Thursday afternoon.