John Parisi, 52, of Atlantic City, admitted he conspired to defraud Texas-based FirstPlus Financial Group, a publicly traded Texas-based company, U.S. Attorney Paul J. Fishman announced Wednesday evening.
Parisi and 12 others, including his cousin, Nicodemo Scarfo Jr., were charged with various counts of racketeering, the illegal takeover of Texas-based FirstPlus Financial Group, securities and fraud conspiracy and wire fraud conspiracy in November of 2011.
Scarfo’s wife, Lisa Marie Scarfo, pleaded guilty to her part in the conspiracy on Tuesday. On Wednesday, Parisi admitted to participating in the scheme in which Nicodemo Scarfo and Lisa Marie Scarfo made a false mortgage loan application in connection with the purchase of a $715,000 house in Egg Harbor Township.
Parisi also said he managed a family trust and a limited liability company in connection with the alleged scheme, officials said. Parisi told officials Scarfo directed him in the use of various bank accounts Scarfo used to receive hundreds of thousands of dollars between July, 2007 and April, 2008, Fishman said.
That money included profits Scarfo allegedly received as part of the fraudulent consulting agreement between his shell company and one controlled by Salvatore Pelullo, Fishman said. It also included money received from the sale of the fraudulent company to FirstPlus Financial Group in 2007. The receipt of these funds took the form of wire transfers between accounts in Pennsylvania and New Jersey, Fishman said.
Parisi faces up to five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for Jan. 17, 2014.
The trial for the remaining offenders in the case, including Nicodemo Scarfo, attorneys William Maxwell, Cory Leshner, David Adler, Gary McCarthy, and Donald Manno, as well as John Maxwell is set to begin Oct. 28.