NORTH PROVIDENCE -- Four local businessmen have been indicted by a federal grand jury in California on charges that they ran an illegal Internet gambling business, grossing over $7 million in three years.
The indictment alleges that Peter V. Tedeschi, Joseph A. Tedeschi Jr., Rocco A. DeLuca, and Rocco A. DeLuca II were partners in a business called Gold Chip Technologies, operated out of an office complex at 990 Mineral Spring Ave.
That office was raided by federal agents two years ago. At the time, no arrests were made, and a spokesman for the U.S. Attorney's office would not explain the reason for the raid.
Now, each of the four men has been charged with two counts of running an illegal gambling business, traveling across state and national borders to run a racketeering business, and conspiracy. Joseph Tedeschi was also charged with 10 more counts of illegal gambling, racketeering, and money laundering.
Gold Chip Technologies developed software that could provide a "realistic" online casino experience: Web site visitors could use their credit cards to gamble on games such as blackjack, poker and roulette, and sports betting, according to the indictment filed last month in U.S. District Court in California.
The Web site ran on three computer servers: one to store a database of gamblers, one to run the gambling simulator, and a third to handle the credit-card transactions, the indictment said.
Two of these servers were housed in Rhode Island, the indictment said. The third -- the gambling simulator -- was housed offshore in the Dominican Republic, where the partners had allegedly incorporated a separate company, Tecnologia JPR, according to the indictment.
But the company also had a licensing agreement with a company in California, Handa Lopez Inc., which provided software and maintenance support. When the servers broke down, the indictment said, tech workers from Handa Lopez would repair them.
The operation ran from mid-1997 until 2000, the indictment said. Yesterday, a receptionist at 990 Mineral Spring Ave. told a reporter that Gold Chip was "long gone," although its name was still listed outside the office complex and the Rhode Island Corporations Database lists it as an active entity -- a "merchant accountant for bank card transactions."
Rocco DeLuca, who was once once assistant director of transportation/maintenance at the state Department of Transportation, is president of another company, Nationwide Home Improvement, which also has offices at 990 Mineral Spring Ave. -- across the hall from Coast to Coast Mortgage and Funding LLC, which is managed by Peter Tedeschi.
Outside his office yesterday, DeLuca referred questions to his lawyer, Charles Tamuleviz. Tamuleviz declined comment, saying he didn't want to talk about the case until his clients' arraignment next month in San Jose.
DeLuca's son, Rocco DeLuca II, was recently praised by town officials when he undertook the redevelopment of a vacant industrial building in a residential neighborhood. The younger DeLuca planned to turn the the building into residential apartments.
Town authorities expressed surprise at the indictment yesterday. The younger DeLuca is no longer developing the property, said Town Planner Leo Perrotta; he sold it a month ago to another developer.
