1 00:00:01,160 --> 00:00:06,780 In this episode of American Greed, the Romano brothers of Long Island are 2 00:00:06,780 --> 00:00:12,700 working the phones, selling $75 million worth of coins to eager and naive 3 00:00:12,700 --> 00:00:17,740 investors. The salesmen knew who they could trick and confuse, and they kept 4 00:00:17,740 --> 00:00:22,180 going back to the well. But when the family's arrested for mail and wire 5 00:00:22,640 --> 00:00:26,900 Joseph Romano wants payback from the ones who put him away. 6 00:00:27,610 --> 00:00:31,210 A total of $40 ,000 would be paid for the killing of the judge and the 7 00:00:31,210 --> 00:00:32,210 prosecutor. 8 00:00:34,510 --> 00:00:41,210 Prison cameras catch Romano plotting with a hired 9 00:00:41,210 --> 00:00:42,210 killer. 10 00:00:43,570 --> 00:00:49,370 But murder is only part of the gruesome plan. 11 00:00:53,160 --> 00:00:57,600 For the first time, Romano's chosen hitman tells the whole story. 12 00:00:58,020 --> 00:01:01,980 His hatred towards these two people was so great. 13 00:01:02,420 --> 00:01:07,220 He wants her in a 35 -gallon drop. Not a 50, but a 35 -gallon drop. 14 00:01:07,580 --> 00:01:08,760 That's a little freaky. 15 00:01:26,350 --> 00:01:32,150 In Levittown, Long Island, 18 -year -old Michael Romano is an entrepreneur with 16 00:01:32,150 --> 00:01:32,988 a plan. 17 00:01:32,990 --> 00:01:37,930 He's recently graduated from Division Avenue High School, and now he's selling 18 00:01:37,930 --> 00:01:41,070 collectible coins for a local telemarketing company. 19 00:01:41,510 --> 00:01:46,730 He knows nothing about coins, but he's a strong -willed salesman, says Assistant 20 00:01:46,730 --> 00:01:48,710 U .S. Attorney Lara Gatz. 21 00:01:49,050 --> 00:01:53,170 He enjoyed the power that he had over people, and he enjoyed manipulating them 22 00:01:53,170 --> 00:01:54,170 and pulling their strings. 23 00:01:54,910 --> 00:01:57,330 and getting them to do what he wanted them to do. 24 00:01:58,490 --> 00:02:02,130 Romano quickly decides he's learned enough to run his own company. 25 00:02:03,050 --> 00:02:08,289 He lives in this suburban home where he's already planting the seeds of a 26 00:02:08,289 --> 00:02:09,430 criminal empire. 27 00:02:10,330 --> 00:02:13,690 The Romanos were from a middle -class family on Long Island. 28 00:02:14,330 --> 00:02:18,890 From a business purpose, they were not very that sophisticated. I don't think 29 00:02:18,890 --> 00:02:22,730 they were highly educated, but yet their plan was ingenious, what they did. 30 00:02:23,839 --> 00:02:29,960 In 1988, Romano sets up shop in this storefront in nearby Massapequa and 31 00:02:29,960 --> 00:02:32,120 it Wall Street Rare Coins. 32 00:02:32,420 --> 00:02:36,940 He hires a small sales staff to work his phones, including his oldest brother, 33 00:02:37,080 --> 00:02:39,620 Joseph, who has recently left the Navy. 34 00:02:40,080 --> 00:02:44,120 None of these people had any experience in the coin industry. None of them 35 00:02:44,120 --> 00:02:47,000 collected coins themselves. None of them even liked coins from what we 36 00:02:47,000 --> 00:02:49,700 understand. It was just a quick way to make money. 37 00:02:50,860 --> 00:02:56,120 Joseph, weighing in at nearly 300 pounds and well over six feet tall, is loud 38 00:02:56,120 --> 00:02:57,120 and imposing. 39 00:02:57,220 --> 00:03:00,520 He's the sales manager running the shop with an iron fist. 40 00:03:01,040 --> 00:03:05,760 They're hawking a variety of coins, but Ben Franklin half dollars are 41 00:03:05,760 --> 00:03:07,260 particularly easy to move. 42 00:03:07,800 --> 00:03:12,180 Investors like them because they are 90 % silver and because they can be very 43 00:03:12,180 --> 00:03:17,050 cheap. at the ground level with their starting, can't go wrong. So they'll 44 00:03:17,050 --> 00:03:22,550 on, and for $110 or $120 or $150, they'll buy a couple of rounds of Ben 45 00:03:22,550 --> 00:03:23,550 half dollars. 46 00:03:24,090 --> 00:03:30,210 Real coin experts, known as numismatists, carefully grade coins on a 47 00:03:30,210 --> 00:03:31,210 to 70. 48 00:03:31,290 --> 00:03:34,650 Coins falling between 60 and 70 are the most prized. 49 00:03:36,150 --> 00:03:39,170 Romano salesmen are claiming they've landed a windfall. 50 00:03:39,550 --> 00:03:43,230 Near -perfect coins recently discovered at estate sales. 51 00:03:43,710 --> 00:03:48,730 And they came across the hundred rolls of Benjamin Franklin half dollars that 52 00:03:48,730 --> 00:03:51,530 hadn't seen the light of day in 40 years. 53 00:03:52,410 --> 00:03:57,630 All day long, salesmen worked the phones, targeting mostly retired and 54 00:03:57,630 --> 00:04:00,970 amateur collectors with once -in -a -lifetime deals. 55 00:04:01,850 --> 00:04:06,230 So the idea was start people small with silver coins, tell them they're going to 56 00:04:06,230 --> 00:04:10,510 increase in value, get them to buy more and more coins, and ultimately steal 57 00:04:10,510 --> 00:04:12,890 their life savings. And that's really their business model. 58 00:04:13,530 --> 00:04:19,310 The pitch snares anyone willing to listen, especially those new to buying 59 00:04:19,810 --> 00:04:23,430 If you were a savvy coin collector, you would never have bought coins from 60 00:04:23,430 --> 00:04:26,390 Michael or Joe Romano because you would have known right away that something was 61 00:04:26,390 --> 00:04:27,390 up. 62 00:04:29,070 --> 00:04:33,010 What's up is that the Romanos aren't selling rare mint condition coins 63 00:04:33,010 --> 00:04:34,730 discovered at estate sales. 64 00:04:35,810 --> 00:04:37,530 They were buying the coins locally. 65 00:04:37,850 --> 00:04:42,550 They had wholesalers located throughout Long Island. One of them was in Queens. 66 00:04:43,430 --> 00:04:48,410 And Michael is grading the coins himself, giving them arbitrary numbers 67 00:04:48,410 --> 00:04:49,590 inflate their value. 68 00:04:49,950 --> 00:04:53,850 Michael Romano decided what he wanted to sell that coin for and then slapped the 69 00:04:53,850 --> 00:04:55,210 grade on as an afterthought, frankly. 70 00:04:55,530 --> 00:04:56,990 So Michael Romano... 71 00:04:57,360 --> 00:05:01,840 Only job in his life was defrauding people, selling them bogus coins. 72 00:05:03,420 --> 00:05:04,880 And he's good at it. 73 00:05:05,220 --> 00:05:08,800 Michael Romano is on his way to pocketing nearly $7 million. 74 00:05:09,760 --> 00:05:13,160 But that success leads to serious sibling rivalry. 75 00:05:13,580 --> 00:05:17,880 And in 2001, Joseph quits to start his own company. 76 00:05:18,600 --> 00:05:21,800 It's been described as a falling out over money. It's been described as a 77 00:05:21,800 --> 00:05:23,380 falling out over sales practices. 78 00:05:24,540 --> 00:05:26,860 Joe Romano doesn't leave empty -handed. 79 00:05:27,260 --> 00:05:30,280 He takes his brothers Salvatore and Vincent with him. 80 00:05:30,540 --> 00:05:35,360 Joe had an amazing ability to get people across the board to do what he wanted 81 00:05:35,360 --> 00:05:38,640 them to do. Things they knew were wrong, things that they didn't even want to 82 00:05:38,640 --> 00:05:42,960 do. But he had an incredible way of convincing people to do his bidding. 83 00:05:44,220 --> 00:05:50,560 He opens Last Quarter Coin, Inc. in nearby Copeg, using all the tricks he's 84 00:05:50,560 --> 00:05:51,560 learned from his kid brother. 85 00:05:52,000 --> 00:05:53,940 They were running identical scams. 86 00:05:54,360 --> 00:05:56,600 into two different locations on Long Island. 87 00:05:57,340 --> 00:06:01,740 They had a rivalry amongst themselves of who's making more money, who's the 88 00:06:01,740 --> 00:06:03,900 smarter one, and who could outdo the other one. 89 00:06:05,100 --> 00:06:09,960 Soon, millions will be flowing into Joseph Romano's pockets as well. 90 00:06:11,920 --> 00:06:17,680 Next on American Greed, we go inside the Romano brothers' boiler room fraud to 91 00:06:17,680 --> 00:06:19,380 see just how well it pays. 92 00:06:19,920 --> 00:06:23,120 Over the course of the time, I think I made over $3 million. 93 00:06:35,150 --> 00:06:40,170 Brothers Michael and Joseph Romano will each perfect separate coin telemarketing 94 00:06:40,170 --> 00:06:43,950 frauds on Long Island between 2001 and 2008. 95 00:06:44,430 --> 00:06:50,010 But Washington State AARP director Doug Shadel says the real maestros are their 96 00:06:50,010 --> 00:06:52,410 salesmen who work the phones tirelessly. 97 00:06:52,870 --> 00:06:57,010 It's like going one -on -one with Michael Jordan, you know. You're not 98 00:06:57,010 --> 00:07:00,290 win. These guys are really good on the phone. That's all they do all day long. 99 00:07:01,320 --> 00:07:06,100 Michael likes to hire fronters, young men that he can easily control. 100 00:07:06,560 --> 00:07:11,140 He would select people to work for him who he knew he could manipulate, people 101 00:07:11,140 --> 00:07:14,440 with drug problems, people with emotional problems, people with family 102 00:07:15,880 --> 00:07:20,940 Artie, who asks that his identity not be revealed, begins working for Michael 103 00:07:20,940 --> 00:07:22,140 Romano in 2006. 104 00:07:22,980 --> 00:07:27,460 He's 25 years old and addicted to the club drug GHB. 105 00:07:28,170 --> 00:07:32,130 Although he knows nothing about coins, he's offered a job on the spot. 106 00:07:32,730 --> 00:07:37,570 They originally didn't describe the job to me. They kind of did a very good job 107 00:07:37,570 --> 00:07:42,570 of showing me all their beautiful cars and boats and houses and money and 108 00:07:42,570 --> 00:07:43,830 watches and jewelry. 109 00:07:45,470 --> 00:07:50,190 For a drug addict with no money, seeing Michael's lifestyle is the only pitch 110 00:07:50,190 --> 00:07:51,930 Artie needs to hear. 111 00:07:52,270 --> 00:07:56,730 I want that. I want money. I want a boat. I want a house. I want a nice car. 112 00:07:57,680 --> 00:08:02,560 Soon, Artie's making a straight 17 % commission selling collectible coins. 113 00:08:02,980 --> 00:08:08,480 His office is a textbook boiler room, a high -pressure cooker designed to make 114 00:08:08,480 --> 00:08:09,480 money fast. 115 00:08:09,740 --> 00:08:15,280 No windows, no light, just desks, phones, and edges. 116 00:08:16,660 --> 00:08:22,260 Artie works the phone all day long, selling coins to anyone he can keep on 117 00:08:22,260 --> 00:08:27,260 line. This coin has... been trending for upwards of $500. 118 00:08:27,640 --> 00:08:29,480 Today, you can get it for $350. 119 00:08:30,380 --> 00:08:34,860 Out of 100 leads, I would say maybe once or twice, somebody would actually say 120 00:08:34,860 --> 00:08:35,860 yes. 121 00:08:36,179 --> 00:08:40,360 Each pitch is carefully scripted. Every word is written down. 122 00:08:41,580 --> 00:08:42,700 Incredible condition. 123 00:08:43,080 --> 00:08:44,240 Beautiful luster. 124 00:08:44,740 --> 00:08:46,060 Lowest price in years. 125 00:08:46,520 --> 00:08:47,800 Very limited supply. 126 00:08:48,480 --> 00:08:52,140 We just got back into town from a great coin show, and something very exciting 127 00:08:52,140 --> 00:08:53,129 came in. 128 00:08:53,130 --> 00:08:56,270 You know, we're trying to create a sense of urgency to purchase something. 129 00:08:57,510 --> 00:09:03,430 Artie, the 25 -year -old drug addict, will make $250 ,000 during his two -and 130 00:09:03,430 --> 00:09:05,190 -half years working for Michael Romano. 131 00:09:06,210 --> 00:09:10,670 He admits that kind of money takes the sting out of ripping people off. 132 00:09:11,770 --> 00:09:17,210 When you're getting a job that's paying you $2 ,000 a week, your conscience 133 00:09:17,210 --> 00:09:18,530 really isn't playing a factor in it. 134 00:09:20,170 --> 00:09:22,230 Drugs are prohibited in the office. 135 00:09:23,000 --> 00:09:27,540 But after work, anything goes, says attorney Mateen Emuna, who represents 136 00:09:27,540 --> 00:09:29,120 another Romano salesman. 137 00:09:29,420 --> 00:09:33,900 After work, a lot of these salesmen would go do lines together, go to strip 138 00:09:33,900 --> 00:09:37,040 clubs, go to bars, and spend a lot of money. 139 00:09:37,780 --> 00:09:43,020 Emuna says Michael Romano routinely partied and did drugs with employees 140 00:09:43,020 --> 00:09:44,020 hours. 141 00:09:44,200 --> 00:09:46,160 He had that godfather mentality. 142 00:09:47,180 --> 00:09:48,780 He's the one that called the shot. 143 00:09:49,210 --> 00:09:52,970 He wanted to pretty much say, not only do I control your life during business 144 00:09:52,970 --> 00:09:56,490 hours, I control your life after business hours as well. 145 00:09:58,490 --> 00:10:00,790 Joseph Romano runs his job differently. 146 00:10:01,390 --> 00:10:05,670 His closers are top salesmen that won't take no for an answer. 147 00:10:06,690 --> 00:10:10,170 These were guys that weren't kids, and they knew every angle. 148 00:10:11,210 --> 00:10:14,790 38 -year -old Tom Arnold is Joe Romano's top closer. 149 00:10:15,390 --> 00:10:19,790 His trick is to befriend his clients so that he can get into their wallets. 150 00:10:20,030 --> 00:10:24,150 You would keep in touch with them. They would become your new best friend. 151 00:10:24,410 --> 00:10:27,630 The nicer you spoke to people, the better results you would get. 152 00:10:28,950 --> 00:10:34,810 Arnold works the phones with precision, earning 25 % commission on everything he 153 00:10:34,810 --> 00:10:39,270 sells. Tom Arnold would inevitably close the deal because Tom Arnold knew how to 154 00:10:39,270 --> 00:10:42,790 get people to buy coin. He was excellent at it. He's an excellent lawyer. 155 00:10:44,140 --> 00:10:49,420 This video of Arnold and Romano brother Salvatore shows the men talking and 156 00:10:49,420 --> 00:10:51,720 enjoying smoke breaks outside the company. 157 00:10:52,180 --> 00:10:57,940 But these images, recorded by Joe Romano himself, provide a rare look behind the 158 00:10:57,940 --> 00:10:59,720 scenes of a working boiler room. 159 00:11:00,740 --> 00:11:05,460 He's installed ten security cameras in the office to make sure his employees 160 00:11:05,460 --> 00:11:06,660 sticking to the script. 161 00:11:07,230 --> 00:11:09,430 It was like Oz pulling the strings. 162 00:11:09,830 --> 00:11:14,170 Joe's idea was, no matter where I am, I can check on them and see what they're 163 00:11:14,170 --> 00:11:15,170 doing at any time. 164 00:11:16,310 --> 00:11:18,870 In these videos, the salesmen are relentless. 165 00:11:19,510 --> 00:11:22,790 Repeat customers with deep pockets are called whales. 166 00:11:23,850 --> 00:11:26,890 Arnold's job is to get those whales to keep spending money. 167 00:11:27,550 --> 00:11:32,090 He does that by offering deals on increasingly expensive coins. 168 00:11:32,430 --> 00:11:33,990 You want to sell them as much as you can. 169 00:11:34,410 --> 00:11:36,890 It escalated from the Ben Franklin's. 170 00:11:37,130 --> 00:11:42,250 up to extremely rare sets of coins that were $50 ,000, $100 ,000 each. 171 00:11:43,550 --> 00:11:47,290 Under the watchful gaze of his boss, Arnold keeps closing sales. 172 00:11:47,650 --> 00:11:51,610 And if his marks claim that they are out of money, he always has a helpful 173 00:11:51,610 --> 00:11:56,930 solution. He would encourage them to take out an equity loan or any type of 174 00:11:56,930 --> 00:11:58,250 to get the money for the coins. 175 00:11:59,510 --> 00:12:01,810 Big sales mean big paydays. 176 00:12:02,300 --> 00:12:06,980 In five years, Arnold says those 25 % commissions add up quickly. 177 00:12:07,680 --> 00:12:11,060 Over the course of the time, I think I made over $3 million. 178 00:12:12,820 --> 00:12:17,460 But the problem with the Romano boiler rooms is no matter how smooth the 179 00:12:17,460 --> 00:12:23,420 promises, how polished the lies, sooner or later customers realize they're not 180 00:12:23,420 --> 00:12:24,700 getting what they paid for. 181 00:12:25,480 --> 00:12:27,000 Criminals have a way of knowing. 182 00:12:27,520 --> 00:12:31,760 when the House of Cards is about to fall. And Michael and Joe both knew when 183 00:12:31,760 --> 00:12:32,760 was time to move on. 184 00:12:33,300 --> 00:12:36,400 For the Romanos, that's part of the business plan. 185 00:12:38,240 --> 00:12:44,640 Between 2001 and 2008, both Joseph and Michael Romano will each own three coin 186 00:12:44,640 --> 00:12:46,420 fraud companies on Long Island. 187 00:12:46,920 --> 00:12:48,440 And they are all the same. 188 00:12:49,240 --> 00:12:52,480 Nondescript storefronts designed to hide the past. 189 00:12:52,960 --> 00:12:58,020 If someone says to you, at the new company, well, aren't you part of that 190 00:12:58,020 --> 00:13:02,500 company? They can say, well, no, that company's gone. This is a new company. 191 00:13:04,600 --> 00:13:10,260 Next on American Greed, it doesn't matter who the Romanos have to destroy 192 00:13:10,260 --> 00:13:11,780 keep the good times going. 193 00:13:12,480 --> 00:13:13,740 He was just devastated. 194 00:13:14,560 --> 00:13:19,960 And later, when his back is against the wall, Joseph Romano plots a grisly 195 00:13:19,960 --> 00:13:20,960 revenge. 196 00:13:21,980 --> 00:13:22,980 Joseph, good morning. 197 00:13:23,300 --> 00:13:24,300 Judge Bianco. 198 00:13:24,760 --> 00:13:27,200 and prosecutor Gatz killed. 199 00:13:38,320 --> 00:13:43,840 In the summer of 2008, Tina Morton is making a heartbreaking discovery in San 200 00:13:43,840 --> 00:13:44,840 Diego. 201 00:13:45,120 --> 00:13:49,880 Her uncle, Ray Gibbons, has been caught in the Romano's coin fraud snare. 202 00:13:50,480 --> 00:13:52,320 Ray mortgaged his house. 203 00:13:53,130 --> 00:13:59,050 He sold anything of value, emptied his bank account. He had nothing by the time 204 00:13:59,050 --> 00:14:00,050 it was over. 205 00:14:00,850 --> 00:14:06,670 Gibbons has been secretly giving the Romanos nearly $370 ,000, practically 206 00:14:06,670 --> 00:14:08,770 bankrupting himself in the process. 207 00:14:09,430 --> 00:14:14,990 These common are experts. They know what to say, how to prey on them, and they 208 00:14:14,990 --> 00:14:16,810 just have no scruples whatsoever. 209 00:14:19,280 --> 00:14:25,560 Born in 1923, Ray Gibbons has survived the Great Depression and World War II, 210 00:14:25,680 --> 00:14:28,600 where he served in the Navy aboard the USS Warhawk. 211 00:14:29,100 --> 00:14:34,180 After the war, Gibbons becomes a design engineer, settles in Texas, and 212 00:14:34,180 --> 00:14:37,800 eventually retires from Lockheed Aircraft in 1991. 213 00:14:38,540 --> 00:14:45,440 He worked his whole life, lived very frugally, and was looking forward to 214 00:14:45,440 --> 00:14:47,680 a nice life in retirement. 215 00:14:49,770 --> 00:14:55,390 But when Romano's salesmen targeted him in 2007, Ray Gibbons isn't a war hero. 216 00:14:55,670 --> 00:14:58,050 He's just a source of easy cash. 217 00:14:58,550 --> 00:14:59,550 They're very smart. 218 00:14:59,950 --> 00:15:05,210 He's a sports aficionado, so they would talk baseball, football, basketball with 219 00:15:05,210 --> 00:15:06,710 him, gain his trust. 220 00:15:07,550 --> 00:15:10,930 So he called them his most trusted friend. 221 00:15:13,680 --> 00:15:19,400 2 ,600 miles away in Virginia, John is a recently retired federal parole officer 222 00:15:19,400 --> 00:15:21,980 who spent 30 years dealing with bad guys. 223 00:15:22,860 --> 00:15:27,860 But that experience won't protect him either when the Romanos come calling in 224 00:15:27,860 --> 00:15:28,860 2004. 225 00:15:29,640 --> 00:15:35,920 I feel that I should have been wise in terms of how this thing went down, but 226 00:15:35,920 --> 00:15:38,240 these guys, they had it down pat. 227 00:15:39,020 --> 00:15:43,620 Because his family and friends don't know the full story, he's asked that his 228 00:15:43,620 --> 00:15:44,840 identity be kept secret. 229 00:15:45,680 --> 00:15:50,560 When Joe Romano's top salesman Tom Arnold calls with a deal on rolls of Ben 230 00:15:50,560 --> 00:15:56,960 Franklin coins for $390, he jumps on it. So I thought, well, this must be a good 231 00:15:56,960 --> 00:16:00,940 investment, and I would make some money, and needless to say, that point didn't 232 00:16:00,940 --> 00:16:01,940 work out. 233 00:16:02,060 --> 00:16:06,400 To keep John buying more coins, Tom Arnold sweetens the deal. 234 00:16:07,240 --> 00:16:12,320 He says he's found a wealthy and mysterious third -party investor who 235 00:16:12,320 --> 00:16:15,520 purchase all of John's coins for a hefty profit. 236 00:16:15,800 --> 00:16:22,340 They would explain that the large investor was a very rich 237 00:16:22,340 --> 00:16:27,240 that he didn't want to go through the trouble of buying individual rolls. 238 00:16:28,680 --> 00:16:31,700 Ray Gibbons is also hearing the same promise. 239 00:16:31,980 --> 00:16:36,220 His so -called benefactor is a Japanese businessman named Mr. 240 00:16:36,520 --> 00:16:43,340 Ahita. Mr. Ahita represented his payday. He never met him, but he talked 241 00:16:43,340 --> 00:16:47,460 about him like he knew him. I mean, he'd say, oh, he has a private plane, he has 242 00:16:47,460 --> 00:16:48,460 all these things. 243 00:16:49,120 --> 00:16:54,340 But to complete the sale, John and Ray Gibbons are told they must buy more 244 00:16:54,340 --> 00:16:56,460 coins, $10 ,000. 245 00:16:57,450 --> 00:17:03,530 $12 ,000, $30 ,000, even a $44 ,000 roll of coins. 246 00:17:04,589 --> 00:17:08,410 The idea was, again, to move the finish line. The investor that was going to buy 247 00:17:08,410 --> 00:17:11,730 their coins didn't only want rolls now. That investor wanted gold coins. That 248 00:17:11,730 --> 00:17:13,310 investor wanted silver coins. 249 00:17:13,950 --> 00:17:18,970 But each time Romano investors are scheduled to buy John and Ray Gibbons 250 00:17:19,270 --> 00:17:20,670 the deals fall apart. 251 00:17:21,270 --> 00:17:25,910 Well, the investor decided that he wanted to buy a couple additional rolls. 252 00:17:25,910 --> 00:17:26,910 was always... 253 00:17:33,350 --> 00:17:38,970 There's a good reason these deals never happened, admits salesman Tom Arnold. 254 00:17:40,970 --> 00:17:47,430 But John and Ray Gibbons don't know that. 255 00:17:47,690 --> 00:17:53,050 They both borrow money from friends and family, digging themselves in deeper and 256 00:17:53,050 --> 00:17:54,050 deeper. 257 00:17:56,410 --> 00:17:58,350 life insurance policy that I had. 258 00:17:58,950 --> 00:18:03,610 I basically cleaned out a good part of my savings account. 259 00:18:04,390 --> 00:18:08,970 It was almost the never -ending scheme because once they got involved, they 260 00:18:08,970 --> 00:18:12,650 they couldn't extricate themselves until they got their money, and they were 261 00:18:12,650 --> 00:18:13,650 never going to get their money. 262 00:18:14,810 --> 00:18:19,350 While John, Ray Gibbons, and thousands of other Romano clients are buying 263 00:18:19,350 --> 00:18:24,810 themselves into bankruptcy, Michael and Joseph are basking in the fruits of 264 00:18:24,810 --> 00:18:25,810 their spoils. 265 00:18:26,480 --> 00:18:30,660 They lived in a middle -class residential area. They didn't do 266 00:18:30,660 --> 00:18:35,020 extravagant, but yet their bank accounts work for themselves. 267 00:18:36,320 --> 00:18:41,140 Michael puts much of the $7 million he's raking in straight into savings. 268 00:18:41,560 --> 00:18:45,600 He put his money in a checking account like every average person because he has 269 00:18:45,600 --> 00:18:47,900 convinced himself over the years that he did nothing wrong. 270 00:18:49,020 --> 00:18:53,380 But he does like to splurge, says former employee Artie. 271 00:18:53,950 --> 00:18:59,470 He had a Range Rover, had a nice BMW, nice boat, and a nice house. 272 00:19:00,790 --> 00:19:05,890 He parties it up in his West Islip bachelor pad, and when he hits the town, 273 00:19:06,070 --> 00:19:07,510 money flows freely. 274 00:19:08,290 --> 00:19:12,390 He was definitely a single guy, trying to bring home different women every 275 00:19:12,390 --> 00:19:18,290 night, and, you know, rocking the nice cars, you know, the nice watches, and 276 00:19:18,290 --> 00:19:19,290 nice clothes. 277 00:19:20,870 --> 00:19:25,230 Oldest brother Joseph Romano still lives down the street from the Levittown 278 00:19:25,230 --> 00:19:29,470 house he grew up in. But the suburban facade he's created for himself on Long 279 00:19:29,470 --> 00:19:31,910 Island doesn't tell the full story. 280 00:19:32,230 --> 00:19:35,930 Over a five or six year period, Joseph Romano made over $13 .5 million. 281 00:19:37,550 --> 00:19:40,890 Joe Romano spends his money on Florida real estate. 282 00:19:41,150 --> 00:19:45,590 He dumps more than a million dollars into a Palm Beach mansion he's built in 283 00:19:45,590 --> 00:19:46,630 this gated community. 284 00:19:47,690 --> 00:19:49,130 The children were in private school. 285 00:19:49,570 --> 00:19:50,650 His wife didn't work. 286 00:19:50,930 --> 00:19:54,830 He was able to, with the coins for proceeds, live a very nice lifestyle. 287 00:19:55,790 --> 00:19:58,830 One of Joe's passions is collecting antique cars. 288 00:19:59,290 --> 00:20:03,710 He spends tens of thousands of dollars rebuilding his prizes from scratch. 289 00:20:04,530 --> 00:20:09,510 He came to New York regularly, took people out. He liked to be the big man 290 00:20:09,510 --> 00:20:10,510 the bar, so to speak. 291 00:20:11,200 --> 00:20:13,700 He was really a very flashy, flamboyant person. 292 00:20:14,120 --> 00:20:18,860 And it's all built on proceeds from a coin fraud draining thousands of victims 293 00:20:18,860 --> 00:20:21,840 dry, so long as they don't fight back. 294 00:20:23,480 --> 00:20:25,100 Next on American Greed. 295 00:20:27,940 --> 00:20:34,760 The Romanos are about to 296 00:20:34,760 --> 00:20:36,920 meet their 78 -year -old match. 297 00:20:37,610 --> 00:20:39,850 I called him a lot. I called him what he was. 298 00:20:40,150 --> 00:20:41,990 I should have called him a whole lot worse. 299 00:20:53,470 --> 00:20:59,070 By the fall of 2008, 78 -year -old Walt Shepard is furious with the Romano 300 00:20:59,070 --> 00:21:04,090 salesman who hound him constantly, particularly top closer Tom Arnold. 301 00:21:11,570 --> 00:21:16,330 Shepard spent $141 ,000 on coins he's bought over the phone. 302 00:21:16,670 --> 00:21:18,430 Now he's out of money. 303 00:21:18,770 --> 00:21:24,310 At first I was paying $300 or so for the first roll of coins, but by the time I 304 00:21:24,310 --> 00:21:27,730 got to the end, it was something like $30 ,000. 305 00:21:39,100 --> 00:21:43,460 Shepard's begun secretly taping the conversations he's having with Tom 306 00:21:43,840 --> 00:21:47,020 I knew that somebody ought to do something about it. 307 00:21:47,380 --> 00:21:52,600 The tapes gave me the proof, you know, and it was perfectly evident what had 308 00:21:52,600 --> 00:21:53,600 happened. 309 00:21:54,640 --> 00:21:59,760 Shepard lives deep in the oak -covered hills of North Carolina, and he's never 310 00:21:59,760 --> 00:22:01,860 been afraid to fight for what he believes. 311 00:22:02,650 --> 00:22:08,230 In 1944, 14 -year -old Shepard lies about his age and enlists in the Army 312 00:22:08,230 --> 00:22:10,490 Force, where he sees action in the Pacific. 313 00:22:10,910 --> 00:22:15,250 A year later, he's already a sergeant at Iwo Jima, when his captain discovers 314 00:22:15,250 --> 00:22:18,230 his age and threatens to ship him back home. 315 00:22:18,710 --> 00:22:20,710 I said, no, I'm not going anywhere. 316 00:22:20,930 --> 00:22:21,950 I'm going to stay right here. 317 00:22:23,150 --> 00:22:27,930 After the war, Shepard spends his life selling life insurance, designing mobile 318 00:22:27,930 --> 00:22:30,710 homes, and patenting four inventions. 319 00:22:31,770 --> 00:22:35,210 But none of that matters once Tom Arnold gets his number. 320 00:22:36,110 --> 00:22:37,870 Arnold's always got good news. 321 00:22:38,210 --> 00:22:42,230 He says Shepard's coins are worth ten times what he's paid for them. 322 00:22:42,770 --> 00:22:46,250 Okay, let me get your portfolio up on the screen over here. 323 00:22:47,170 --> 00:22:51,350 I've got $1 ,431 ,000. 324 00:22:53,250 --> 00:22:56,310 Arnold's even found an investor to buy Shepard coins. 325 00:22:57,000 --> 00:22:58,960 but the deal never quite works out. 326 00:22:59,260 --> 00:23:06,100 There was always an excuse that something happened or they couldn't 327 00:23:06,100 --> 00:23:09,080 and there'd be a few more days and they'd drag it out. 328 00:23:13,360 --> 00:23:20,340 And then after that had time to kind of cool off, then 329 00:23:20,340 --> 00:23:22,500 they'd hit you back for another roll of coins. 330 00:23:34,199 --> 00:23:38,160 They never left you alone. They called and called and called. 331 00:23:39,520 --> 00:23:45,980 Now, all Shepard has to show for $141 ,000 is a pile of unopened coins that he 332 00:23:45,980 --> 00:23:46,980 can't sell. 333 00:23:48,300 --> 00:23:52,140 On tape, he eventually loses patience with Tom Arnold. 334 00:24:06,480 --> 00:24:08,740 Well, I called him a liar. I called him what he was. 335 00:24:09,020 --> 00:24:10,900 I should have called him a whole lot worse. 336 00:24:12,600 --> 00:24:17,020 Thanks to Arnold's lies, Shepard hopes his coins are worth seven figures. 337 00:24:17,460 --> 00:24:20,320 But a local appraiser is less optimistic. 338 00:24:21,160 --> 00:24:26,000 So he's being told they're worth $1 .4 million, and they're really worth $20 339 00:24:26,000 --> 00:24:32,840 ,000. That's how egregious the lies were here. He just confirmed what I probably 340 00:24:32,840 --> 00:24:33,840 already knew. 341 00:24:35,370 --> 00:24:39,070 In 2008, Shepard hands over his recordings to state investigators. 342 00:24:40,330 --> 00:24:44,430 He's not the only one filing complaints about the Romano brothers' coin ring, 343 00:24:44,530 --> 00:24:47,710 says Assistant U .S. Attorney Lara Gatz. 344 00:24:48,370 --> 00:24:52,530 If it was one or two complaints, it wouldn't have called for a full federal 345 00:24:52,530 --> 00:24:56,270 investigation. But there were dozens and dozens and dozens of complaints. 346 00:24:57,390 --> 00:25:02,070 Gatz and Postal Inspector Bill Hessel begin surveillance on the Romano 347 00:25:02,270 --> 00:25:03,270 operations. 348 00:25:03,680 --> 00:25:07,200 They interview victims and examine thousands of bank transactions. 349 00:25:08,780 --> 00:25:14,220 Hessel even goes undercover, using a hidden camera to capture Tom Arnold hard 350 00:25:14,220 --> 00:25:15,220 work. 351 00:25:15,340 --> 00:25:17,860 The evidence they collect is astounding. 352 00:25:18,240 --> 00:25:23,560 3 ,000 victims across the country have lost more than $60 million to Romano 353 00:25:23,560 --> 00:25:24,560 telemarketers. 354 00:25:25,700 --> 00:25:31,300 On November 24th, federal agents swoop in on the boiler rooms run by Michael 355 00:25:31,300 --> 00:25:32,300 Joseph Romano. 356 00:25:33,010 --> 00:25:34,110 Salesmen were arrested. 357 00:25:34,730 --> 00:25:35,730 Coins were seized. 358 00:25:36,110 --> 00:25:39,450 People were confessing. It certainly was a good day for the Coins Board 359 00:25:39,450 --> 00:25:40,450 investigation. 360 00:25:41,010 --> 00:25:44,950 Among those arrested are salesmen Artie and Tom Arnold. 361 00:25:46,470 --> 00:25:50,830 When he meets with Prosecutor Gatz, Artie is offered a sobering choice. 362 00:25:52,110 --> 00:25:57,210 I'm either going to quit the business, accept the responsibility, straighten 363 00:25:57,210 --> 00:26:01,170 my life, or I'm going to jail, 100%. 364 00:26:01,720 --> 00:26:02,780 No ifs, ands, or buts. 365 00:26:03,220 --> 00:26:06,500 So I chose creating out my life. 366 00:26:07,860 --> 00:26:10,780 Artie's not the only one to turn on his former boss. 367 00:26:11,720 --> 00:26:16,520 Tom Arnold and several of the other salesmen will rat out the Romanos to 368 00:26:16,520 --> 00:26:17,520 plea deals. 369 00:26:18,080 --> 00:26:21,640 We had videos, we had the audios, we had the victims. 370 00:26:21,960 --> 00:26:25,640 But to have the salesman come up and say, I was wrong and I know I was lying, 371 00:26:25,800 --> 00:26:27,480 that's the icing on the cake. 372 00:26:28,200 --> 00:26:33,280 Both Artie and Tom Arnold plead guilty and are currently awaiting sentencing. 373 00:26:33,820 --> 00:26:39,080 All four Romano brothers, Michael, Joseph, Salvatore, and Vincent, will be 374 00:26:39,080 --> 00:26:40,780 charged with mail and wire fraud. 375 00:26:41,360 --> 00:26:47,520 Their cases are overseen by federal judge Joseph Bianco. Judge Bianco was a 376 00:26:47,520 --> 00:26:48,520 former prosecutor. 377 00:26:48,600 --> 00:26:52,140 He's known as being a very competent judge and a tough judge. 378 00:26:53,070 --> 00:26:58,150 Judge Bianco allows the brothers to post bail, so long as they promise no more 379 00:26:58,150 --> 00:26:59,390 telemarketing operations. 380 00:27:00,110 --> 00:27:04,690 But Joseph's already made $12 million, and when he gets back to his Florida 381 00:27:04,690 --> 00:27:09,910 mansion, he starts a new operation with the help of a friend named David 382 00:27:09,910 --> 00:27:10,910 Merkovic. 383 00:27:11,370 --> 00:27:15,910 Merkovic was a car salesman in Florida, which is how Joe and he met as neighbors 384 00:27:15,910 --> 00:27:16,910 and through the car business. 385 00:27:17,860 --> 00:27:22,980 Murkovic, a six -and -a -half -foot -tall, 240 -pound former Marine, has 386 00:27:22,980 --> 00:27:27,780 Joseph Romano living large in Florida. And now he wants a taste, too. 387 00:27:28,880 --> 00:27:30,900 Remember, David Murkovic was selling cars. 388 00:27:31,120 --> 00:27:34,800 He knew nothing about coins, either. This fraud doesn't require anything more 389 00:27:34,800 --> 00:27:36,220 than the ability to lie and manipulate. 390 00:27:37,040 --> 00:27:41,860 In 2009, they opened Collectible Coins in Palm Beach County. 391 00:27:42,720 --> 00:27:44,260 Murkovic will run the operation. 392 00:27:44,800 --> 00:27:48,460 while Joe sits quietly in the background collecting more money. 393 00:27:48,920 --> 00:27:53,740 It turns out to be a boiler room coin company very similar to the one that was 394 00:27:53,740 --> 00:27:54,740 established in New York. 395 00:27:55,380 --> 00:27:58,000 David Merkovic was the store operator of that company. 396 00:27:59,900 --> 00:28:05,100 Romano is able to pad his bank account nicely for almost a year until the feds 397 00:28:05,100 --> 00:28:06,520 figure out what he's up to. 398 00:28:07,260 --> 00:28:11,530 When we got wind of what was going on... The financial records we obtained 399 00:28:11,530 --> 00:28:15,070 indicated that Joe had earned over a million dollars during that time. 400 00:28:16,830 --> 00:28:22,610 In March 2010, Joseph Romano's bail is revoked, and soon after, Judge Joseph 401 00:28:22,610 --> 00:28:25,850 Bianco sentences him to 15 years in federal prison. 402 00:28:29,810 --> 00:28:30,830 Romano is shocked. 403 00:28:31,030 --> 00:28:34,950 He's been expecting a slap on the wrist. Not serious prison time. 404 00:28:36,460 --> 00:28:41,420 Former salesman Tom Arnold says Joseph Romano made it clear he holds Judge 405 00:28:41,420 --> 00:28:45,860 Joseph Bianco and prosecutor Lara Gatz personally responsible. 406 00:28:46,580 --> 00:28:50,000 Joe said if they give me 20 years, I'll kill them. 407 00:28:51,060 --> 00:28:52,360 And I thought he was kidding. 408 00:28:52,860 --> 00:28:55,120 And then there was history. 409 00:28:55,960 --> 00:28:58,940 People say, I'm going to kill that person. I'm going to break his legs. 410 00:28:59,220 --> 00:29:00,440 I'm going to beat him up. 411 00:29:00,760 --> 00:29:02,360 Usually it stops right there. 412 00:29:02,580 --> 00:29:04,980 Mr. Romano didn't stop there. 413 00:29:06,220 --> 00:29:08,220 Next on American Greed. 414 00:29:09,320 --> 00:29:16,080 An exclusive interview 415 00:29:16,080 --> 00:29:19,020 with the hitman Romano hires to commit murder. 416 00:29:19,880 --> 00:29:23,400 He says he has lists of people he needs taken care of. 417 00:29:24,240 --> 00:29:30,680 Go inside a boiler room at cnbcprime .com slash American Greed. 418 00:29:31,740 --> 00:29:32,800 Feeling greedy? 419 00:29:33,580 --> 00:29:35,980 Want more than your share of behind -the -scenes dirt? 420 00:29:36,700 --> 00:29:39,260 Follow us at AmericanGreedTV on Twitter. 421 00:29:39,600 --> 00:29:40,720 We'll be right back. 422 00:29:46,940 --> 00:29:53,640 In the spring of 2012, Joseph Romano is behind bars, sentenced to 15 years in 423 00:29:53,640 --> 00:29:58,700 prison for his share of a $60 million series of telemarketing coin scams. 424 00:29:59,560 --> 00:30:04,580 Now he's thirsty for revenge, says Lara Gatz, the assistant U .S. attorney who 425 00:30:04,580 --> 00:30:06,520 put him and his three brothers away. 426 00:30:07,460 --> 00:30:11,240 He was the one that stole from people, but ultimately it came to light that he 427 00:30:11,240 --> 00:30:13,240 blamed me personally for his predicament. 428 00:30:13,800 --> 00:30:18,660 Gatz isn't allowed to talk about what happens next, but FBI Special Agent 429 00:30:18,660 --> 00:30:24,140 Ronaldo Terici says Romano begins plotting a gruesome way to reduce his 430 00:30:24,140 --> 00:30:28,340 sentence. He felt that if he was able to eliminate the judge and prosecutor on 431 00:30:28,340 --> 00:30:34,310 this case, that somehow another prosecutor and judge would see his 432 00:30:34,310 --> 00:30:36,930 differently and thus reduce his time in prison. 433 00:30:37,510 --> 00:30:43,050 Prison cameras catch him plotting with a sympathetic ear, a career criminal who 434 00:30:43,050 --> 00:30:46,510 has also been sentenced by federal judge Joseph Bianco. 435 00:30:50,110 --> 00:30:57,090 Joe proceeded to ask the other inmate 436 00:30:57,090 --> 00:31:02,000 if... He knew somebody on the outside that could help eliminate the judge or 437 00:31:02,000 --> 00:31:04,380 kill the prosecutor in the case, Lara Gatz. 438 00:31:05,820 --> 00:31:07,820 Romano's new buddy has good news. 439 00:31:08,020 --> 00:31:13,820 He knows a freelance killer named Bobby Russo who handles this type of work all 440 00:31:13,820 --> 00:31:14,820 the time. 441 00:31:14,840 --> 00:31:16,740 You get this guy to come in on Monday? 442 00:31:17,260 --> 00:31:18,780 No, probably by the end of the week. 443 00:31:20,170 --> 00:31:25,310 In an American Greed exclusive interview, Bobby Russo says he first 444 00:31:25,310 --> 00:31:29,790 Romano on August 21st at the Nassau County Correctional Facility. 445 00:31:30,170 --> 00:31:35,290 He's a big, big man. He's a mountain of a man. He's got to be 6 '6", and at the 446 00:31:35,290 --> 00:31:37,130 time he must have been about 310 pounds. 447 00:31:37,370 --> 00:31:39,370 He's definitely an imposing, intimidating guy. 448 00:31:44,670 --> 00:31:46,650 Romano and Russo get straight to business. 449 00:31:47,680 --> 00:31:51,380 Neither seems aware that prison security cameras are recording their 450 00:31:51,380 --> 00:31:52,380 conversation. 451 00:31:55,080 --> 00:32:01,880 Joe is vetting Bobby out. He's never met Bobby before, though 452 00:32:01,880 --> 00:32:06,260 Joe is obviously being very careful in his first meeting with Bobby. 453 00:32:07,280 --> 00:32:11,820 Romano starts off with small talk, but Russo's in no mood to chat. 454 00:32:12,160 --> 00:32:14,080 And I said, I'm here for the other thing. 455 00:32:14,430 --> 00:32:18,670 And when I said that, his eyes lit up and there was a little smile on his 456 00:32:19,090 --> 00:32:23,730 It was a doubt in my mind that he knew what I was saying to him, and he wanted 457 00:32:23,730 --> 00:32:24,730 me to do it. 458 00:32:26,870 --> 00:32:29,750 Romano has a smaller job to test Russo first. 459 00:32:30,250 --> 00:32:34,350 He wants him to beat up a Long Island mechanic who has repossessed two of his 460 00:32:34,350 --> 00:32:37,890 prized classic cars and is demanding $70 ,000. 461 00:32:47,160 --> 00:32:51,900 Romano will pay Russo $3 ,000 to teach the mechanic a lesson. 462 00:32:52,940 --> 00:32:55,980 He wanted to see if I could follow through with that act of violent 463 00:32:56,220 --> 00:32:58,660 And if I could, then we were off to the races. 464 00:33:02,080 --> 00:33:06,480 Russo's contact on the outside will be Romano's partner, David Merkovic. 465 00:33:07,810 --> 00:33:13,770 Russo's given a down payment of $1 ,500 and told to bring back proof after he 466 00:33:13,770 --> 00:33:14,890 deals with the mechanic. 467 00:33:15,510 --> 00:33:19,810 Upon the completion of the beating, Bobby was to call David and say the 468 00:33:19,810 --> 00:33:23,550 was a success, and that's exactly what happened. 469 00:33:24,970 --> 00:33:30,950 On September 25, 2012, Russo and Merkovic meet in the parking lot of a 470 00:33:30,950 --> 00:33:31,990 Island Home Depot. 471 00:33:33,310 --> 00:33:36,810 He shows Merkovic proof that the mechanic's been beaten. 472 00:33:37,310 --> 00:33:40,310 This photo taken of the victim during the assault. 473 00:33:40,910 --> 00:33:45,210 I show him the photograph of what we did to the mechanic, and he's thrilled. He 474 00:33:45,210 --> 00:33:46,210 loves it. 475 00:33:46,270 --> 00:33:49,170 It may be a little cheap, but I do the work. 476 00:33:51,890 --> 00:33:55,210 Satisfied, Murkovic hands Russo the $1 ,500 he's owed. 477 00:33:55,610 --> 00:34:00,550 When Murkovic calls his boss with the good news, Romano can't hide his joy. 478 00:34:01,470 --> 00:34:06,190 I'm in my cell, dancing around and singing and stuff, you know? 479 00:34:07,690 --> 00:34:11,110 And I just laugh at my balls off thinking about that. 480 00:34:12,290 --> 00:34:17,670 Later that day, Murkovic calls Russo again and asks for another sit -down to 481 00:34:17,670 --> 00:34:18,670 talk more business. 482 00:34:19,750 --> 00:34:23,130 Russo is careful to record the meeting as it goes down. 483 00:34:23,690 --> 00:34:24,690 We met. 484 00:34:24,810 --> 00:34:31,690 And he sat in my car and he told me, Joseph wanted Judge Bianco and 485 00:34:31,690 --> 00:34:34,090 Prosecutor Gatz killed. 486 00:34:36,590 --> 00:34:38,989 What are we talking as far as money? 487 00:34:39,670 --> 00:34:41,409 I got to go for $20 ,000. 488 00:34:42,469 --> 00:34:46,130 I say $40 ,000, and he was fine with it. 489 00:34:46,370 --> 00:34:50,650 He did not say a word about the price that I had wanted to charge. 490 00:34:53,030 --> 00:34:58,450 But for that price, Murkovic says his boss isn't satisfied with just murder. 491 00:34:59,250 --> 00:35:00,890 He's looking for revenge. 492 00:35:01,710 --> 00:35:04,150 He wants both of her heads from now on. 493 00:35:05,150 --> 00:35:12,110 David. instructs Bobby that Joe would like trophies to include decapitations 494 00:35:12,110 --> 00:35:18,570 the heads retained in formaldehyde as well as mutilation of the prosecutor. 495 00:35:20,470 --> 00:35:21,850 Gatsby, you've got to make this appear. 496 00:35:22,270 --> 00:35:27,090 He wants her in a 35 -gallon drum. Not a 50, but a 35 -gallon drum. 497 00:35:27,970 --> 00:35:30,430 Stop her in there. Yeah, yeah. She should fit. 498 00:35:30,730 --> 00:35:34,970 It was so bizarre. 499 00:35:35,920 --> 00:35:38,280 It didn't catch me off balance for a second. 500 00:35:39,460 --> 00:35:41,040 Definitely not an equal plot. 501 00:35:41,840 --> 00:35:47,420 Murkovic gives Russo $22 ,000 cash as a down payment, but it needs to happen 502 00:35:47,420 --> 00:35:48,420 fast. 503 00:35:49,160 --> 00:35:54,180 This needs to get done immediately within the next two weeks. Now 504 00:35:54,180 --> 00:36:01,140 the clock is ticking, and two lives are on the line as this dangerous hitman 505 00:36:01,140 --> 00:36:02,140 closes in. 506 00:36:02,960 --> 00:36:06,720 I collected $22 ,000 to kill the judge and to kill the prosecutor. 507 00:36:07,680 --> 00:36:11,360 Markovic's stressing, I have to by a certain date. I have a deadline. I have 508 00:36:11,360 --> 00:36:12,360 due date. 509 00:36:13,740 --> 00:36:19,660 Up next on American Greed, as Joseph Romano's murderous plot moves to the 510 00:36:19,660 --> 00:36:21,560 stage. We got a plan together. 511 00:36:21,760 --> 00:36:25,920 We saddled up. Will Bobby Russo be able to carry out his boss's orders? 512 00:36:26,900 --> 00:36:30,200 Everything is going great for Joe, except for one thing. 513 00:36:41,390 --> 00:36:42,510 October 2012. 514 00:36:43,670 --> 00:36:49,630 Joe Romano sits behind bars, waiting for word that hitman Bobby Russo has killed 515 00:36:49,630 --> 00:36:52,250 the judge and prosecutor who put him away. 516 00:36:52,770 --> 00:36:56,690 Joe believes it's a plot to kill the judge, and the prosecutor's moving along 517 00:36:56,690 --> 00:37:01,370 well. He believes that his scheme is working like a charm. 518 00:37:02,450 --> 00:37:05,710 Russo's been given $22 ,000 and a deadline. 519 00:37:06,030 --> 00:37:08,410 Now it's up to him to make a move. 520 00:37:09,690 --> 00:37:10,850 I have duty. 521 00:37:11,340 --> 00:37:12,259 I have to deliver. 522 00:37:12,260 --> 00:37:14,560 I have to take care of these two people to collect my money. 523 00:37:15,400 --> 00:37:20,520 But Russo has chosen not to share one key detail with Joseph Romano and his 524 00:37:20,520 --> 00:37:23,140 partner David Merkovic until now. 525 00:37:24,080 --> 00:37:25,080 There's only one problem. 526 00:37:25,560 --> 00:37:26,560 I'm a psychiatrist. 527 00:37:27,060 --> 00:37:31,520 And we have been on to Merkovic and Romano from day one. 528 00:37:31,920 --> 00:37:35,300 And we've been recording every step of this investigation. 529 00:37:37,160 --> 00:37:42,040 Bobby Russo is really 18 -year veteran Suffolk County undercover narcotics 530 00:37:42,040 --> 00:37:46,660 detective Robert Strecker, and he's eager to take these men down. 531 00:37:47,060 --> 00:37:52,120 Really, what Romano and Markovic were doing was striking at the foundation of 532 00:37:52,120 --> 00:37:55,420 the judicial system. They were trying to undermine what keeps our society 533 00:37:55,420 --> 00:37:56,420 together. 534 00:37:56,600 --> 00:38:01,380 Strecker doesn't mind that his real name is used, but he does ask his face be 535 00:38:01,380 --> 00:38:03,780 concealed to protect future undercover operations. 536 00:38:04,830 --> 00:38:09,370 He says the entire murder -for -hire plot has been carefully monitored and 537 00:38:09,370 --> 00:38:13,170 overseen by FBI Special Agent Ronaldo Terici. 538 00:38:13,890 --> 00:38:19,670 The whole case was really a collaborative effort by all the agencies 539 00:38:19,890 --> 00:38:24,530 Suffolk County Police, FBI, National County Police, the U .S. Attorney's 540 00:38:25,190 --> 00:38:26,930 National County Corrections. 541 00:38:27,890 --> 00:38:31,530 Federal Judge Joseph Bianco and Prosecutor Lara Getz. 542 00:38:31,840 --> 00:38:35,920 have been carefully protected by U .S. Marshals since the plot was uncovered. 543 00:38:36,840 --> 00:38:41,640 The prison buddy who connected Romano with Bobby Russo originally has been 544 00:38:41,640 --> 00:38:44,580 wearing a wire for the FBI all along. 545 00:38:45,000 --> 00:38:50,280 He felt that even in the world of criminals, that there was a line not to 546 00:38:50,280 --> 00:38:55,640 crossed, and the line was being crossed by Joe Romano asking him to kill the 547 00:38:55,640 --> 00:38:56,640 judge and the prosecutor. 548 00:38:57,550 --> 00:39:01,710 And the photo of the beaten Long Island mechanic that sold Strecker's cover 549 00:39:01,710 --> 00:39:05,130 story? It was faked, with the help of the mechanic. 550 00:39:05,810 --> 00:39:09,870 So we basically asked him to lie down as if he had been beaten, and then took a 551 00:39:09,870 --> 00:39:13,710 blurry picture as if somebody would be running away after having beaten the 552 00:39:13,710 --> 00:39:15,530 mechanic. It worked great. 553 00:39:17,350 --> 00:39:22,670 The entire plot has been carefully documented, and now Agent Torichi shuts 554 00:39:22,670 --> 00:39:23,670 down. 555 00:39:24,670 --> 00:39:27,570 FBI agents swarm Romano's cell. 556 00:39:28,050 --> 00:39:32,890 After being Mirandized, he provided a full confession and a science warrant 557 00:39:32,890 --> 00:39:36,530 statement about his hatching this plot to kill the judge and the prosecutor. 558 00:39:38,270 --> 00:39:43,630 At the same time, Agent Terici is in Florida, arresting David Merkovic. 559 00:39:44,130 --> 00:39:50,730 While at his house, we found in his safe $18 ,000 in two bundles of 9 ,000, 560 00:39:50,730 --> 00:39:53,430 as well as a loaded pistol in that same safe. 561 00:39:54,670 --> 00:39:59,550 Caught red -handed, David Merkovic pleads guilty to conspiracy to commit 562 00:39:59,550 --> 00:40:03,350 and is sentenced to 24 years in August 2013. 563 00:40:04,990 --> 00:40:09,950 Five months later in federal court, Joseph Romano claims the whole murder 564 00:40:09,950 --> 00:40:11,770 has been blown out of proportion. 565 00:40:12,190 --> 00:40:14,130 He had about an hour -long speech. 566 00:40:14,590 --> 00:40:18,870 as to his view of this case, his view of the government, and also made 567 00:40:18,870 --> 00:40:24,150 references to Moby Dick, and he felt targeted like Moby Dick was targeted. 568 00:40:24,550 --> 00:40:30,210 The man who once referred to his coin scam victims as whales now compares 569 00:40:30,210 --> 00:40:32,570 himself to the most famous whale of all. 570 00:40:32,850 --> 00:40:38,530 He made an analogy to himself being the whale with harpoons plunging into him. 571 00:40:38,990 --> 00:40:42,270 The judge doesn't buy his whale of a tale. 572 00:40:42,710 --> 00:40:47,710 and Joseph Romano is sentenced to two life sentences on top of the 15 he is 573 00:40:47,710 --> 00:40:48,710 currently serving. 574 00:40:49,070 --> 00:40:51,150 He went from numbers to letters. 575 00:40:51,710 --> 00:40:54,970 You never want letters in the federal system because it's L -I -F -E. 576 00:40:56,450 --> 00:40:59,090 It's the end of the line for the Romano family. 577 00:40:59,670 --> 00:41:04,110 Michael Romano is sentenced to 20 years in prison for mail and wire fraud. 578 00:41:04,470 --> 00:41:09,490 Brothers Salvatore and Vincent plead guilty to mail and wire fraud as well 579 00:41:09,490 --> 00:41:10,950 are sentenced to seven years. 580 00:41:11,880 --> 00:41:15,280 I think their next family reunion is going to be paid for by the Department 581 00:41:15,280 --> 00:41:16,280 Justice. 582 00:41:17,280 --> 00:41:21,460 Today, 3 ,000 victims across the country struggle to recover. 583 00:41:22,380 --> 00:41:29,340 The coins Walt Shepard spent $141 ,000 on have been appraised for less than $20 584 00:41:29,340 --> 00:41:35,220 ,000. He's swamped with taxes and struggles to survive on Social Security. 585 00:41:35,720 --> 00:41:40,340 If I didn't own my home here and I had to rent somewhere, I couldn't do it. 586 00:41:40,810 --> 00:41:42,070 You know, I couldn't live. 587 00:41:44,070 --> 00:41:46,950 Ray Gibbons lost $370 ,000. 588 00:41:47,990 --> 00:41:52,650 Today, he lives in an assisted care facility in California where the 589 00:41:52,650 --> 00:41:55,990 of his day is playing dominoes with his niece, Tina Morton. 590 00:41:57,030 --> 00:42:00,790 She says the one -time war hero suffers from dementia. 591 00:42:01,230 --> 00:42:05,650 If there's one benefit to that, it's he doesn't remember the coin scam because 592 00:42:05,650 --> 00:42:09,590 that's all he talked about for months and months and months. 593 00:42:10,120 --> 00:42:11,220 It is just devastating. 594 00:42:14,720 --> 00:42:19,800 Targeting the defenseless, the Romano brothers built a $60 million criminal 595 00:42:19,800 --> 00:42:25,740 empire. They lived a life of lies and fraud, and ultimately they caught up 596 00:42:25,740 --> 00:42:30,120 them. And when Joseph Romano flipped the coin from greed to murder... 597 00:42:30,760 --> 00:42:34,280 He lost it all. Next, welcome to the Mile High Club. 598 00:42:34,600 --> 00:42:39,560 You're at 32 ,000 feet in a Gulfstream jet with a stewardess feeding you 599 00:42:39,660 --> 00:42:41,520 A $31 million con. 600 00:42:41,980 --> 00:42:46,240 American Greed scams, scouts, and suckers. Next on CNBC. 601 00:42:46,640 --> 00:42:49,800 The fastest growing cable network in primetime. 602 00:42:50,340 --> 00:42:51,340 CNBC.