Eleven guilty pleas in Morris County by eight individuals and three companies show how a trucking firm, a cafe and a consultancy became the financial pipeline for a $4.79 million Lucchese gambling operation.

Michael P. Frasso, 48, of Cedar Grove, stood as the lead defendant. He pleaded guilty to a racketeering charge in the second degree, a tax count in the third degree, and a corporate misconduct count in the third degree. The state asked for 15 years, served in aggregate.

Several others entered guilty pleas as well: George Zappola, 65, of Red Bank; Joseph R. "Big Joe" Perna, 56, of Belleville; and John G. Perna, 47, of Little Falls. Prosecutors identified them as high-level managers of the enterprise and alleged Lucchese members. Each pleaded guilty to second-degree racketeering with a recommended seven-year sentence. Wayne D. Cross, 75, of Spring Lake, a Lucchese associate, admitted to third-degree promoting gambling with a five-year recommendation.

The corporate docket included Frasso Trucking, Cafe Gio and CJW Development and Consulting. All three pleaded guilty and face $250,000 fines if the court accepts the state's recommendation.

Thirty-five of the 42 people indicted have entered guilty pleas. The pleas were entered under Attorney General Jennifer Davenport, who succeeded Matthew Platkin in February 2026. The original indictment, handed down in April 2025, charged 39; the docket later grew to 42, according to the Attorney General's Office. The initial charging papers identified roughly $3 million in illicit revenue. By June 2026, prosecutors cited $4.79 million. 

The Lucchese family, one of the five traditional organized crime families based in New York, has maintained a New Jersey faction for decades. It has been prosecuted in the state for gambling and money laundering operations before, most recently in Operation Heat, most recently in Operation Heat, which began in 2007 and produced guilty pleas in 2015.

Investigators Seized Gambling Devices Across Multiple Counties

The public phase of this case began with raids in April 2025 at 12 sites. Law enforcement searched four card clubs in Totowa, Garfield and Woodland Park, plus a Paterson storefront where they seized gaming devices. The betting equipment and locations sat mainly in Passaic and Bergen counties, while the accused came from across northern and central New Jersey. The majority resided in counties next to the gambling spots: Passaic, Bergen, Essex and Morris. Zappola and Norcia were the exceptions, living in Monmouth and Ocean counties.

The $4.79 million marks suspected criminal earnings, not a court-ordered forfeiture. Prosecutors have not disclosed the full financial picture — the per-company cash flow, the sportsbook's duration, or whether other businesses participated — and much of that information remains sealed or sits outside the indictment.

Perna Family Appears in Previous Case

The Perna family has appeared in New Jersey prosecutions before. Ralph V. Perna, who ran the Lucchese family's New Jersey operations, and his son John G. Perna, 38, of West Caldwell, both pleaded guilty in the Operation Heat proceedings in 2015, according to the New Jersey Office of the Attorney General. That case involved an estimated $2.2 billion in wagers over 15 months.

In the 2026 pleas, John G. Perna, 47, of Little Falls, admitted to second-degree racketeering alongside Joseph R. "Big Joe" Perna. "Big Joe" Perna pleaded guilty and received a recommended seven-year sentence. The Attorney General did not specify if the two John Pernas were the same person.

Sentencing Pending as Prosecution Continues

Seven defendants remain under indictment. No sentencing dates have been set for the 35 who have already pleaded guilty. The three corporate defendants still face the $250,000 fines the state requested. Division of Criminal Justice Director Theresa L. Hilton said her office will keep prosecuting as the open cases advance.

Seven defendants still face charges, and are presumed innocent until proven guilty in a court of law, according to the Attorney General's Office. Gerard V. Frasso, 46, of Cedar Grove, and Anand U. Shah, 42, of Prospect Park, were named in the original April 2025 indictment but did not enter pleas in June. The indictment listed Gerard Frasso as a sportsbook agent. Shah was identified as a councilman and local business owner; at the time of his indictment he held posts as finance committee chairman and treasurer of the Prospect Park Board of Education. Prosecutors allege he managed the poker clubs and the online betting operation.

Deputy Attorney General Heather Hausleben handled the prosecution. Detective Sergeant Michael Gallant led the investigation for the New Jersey State Police. The FBI contributed through its Newark and New York offices, while the U.S. Marshals Service and Federal Probation also provided support.

Jeanne Hengemuhle, Acting Superintendent of the New Jersey State Police, said the defendants "have formally accepted responsibility for participating in a criminal enterprise that caused significant harm to individuals and communities." She described the result as "a direct result of the exceptional work of State Police detectives, whose ability to trace the financial trails, uncover the enterprise's structure, and follow the evidence wherever it led built a comprehensive and compelling case."

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Sources

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