Published: Wednesday, April 25, 2012, 7:15 AM

http://www.nj.com/news/index.ssf/2012/04/nj_can_investigate_possible_mo.html

TRENTON — The state can investigate possible money laundering by more than 20 defendants to pay for legal services after they were indicted on allegations they participated in a $2.2 billion international gambling ring operated by the Lucchese crime family, a Superior Court judge has ruled.

Judge Pedro Jimenez, sitting in Trenton, ruled Friday that the state Attorney General’s Office may issue subpoenas to obtain information about defendants’ payments to private attorneys and other transactions because it may provide evidence "relevant" to additional offenses such as money laundering, conspiracy and "other potential crimes."

The evidence could be presented to a state grand jury in Trenton for a new round of indictments.

Although 34 defendants were indicted in 2010, about 10 who are represented by public defenders are not affected by the ruling, along with two who pleaded guilty before the subpoenas were requested in June 2011, according to Peter Aseltine, a spokesman for the Attorney General’s Office.

"We believe they were making very large sums of money off illegal gambling enterprises, and the question is what they did with it," Aseltine said.

"We are tracing the criminal proceeds to see if they are engaging in money laundering or some other crimes," he added, pointing out that the attorney general is interested in other expenditures by the defendants, in addition to attorneys’ fees.

Attorneys for two of the leading reputed mob figures in the case, who had sought to block the subpoenas, said the decision unleashes a set of "issues" that will likely set a precedent for other cases.

"A decision on obtaining fee records of private attorneys would not just affect this case, but it would affect most criminal cases," said Thomas Cataldo, attorney for Ralph Perna, 65, of East Hanover.

Cataldo and John Weichsel, attorney for Matthew Madonna, 75, of Selden, N.Y., both said the defense attorneys are carefully studying the decision and are strongly considering filing an appeal.

"The decision is a little disheartening," Cataldo added.

The 34 defendants were indicted in 2010 on charges involving gambling, money laundering and drug activities. Their cases are being prosecuted in Morris County because some of the defendants live there and some of the alleged activity took place there.

Jimenez denied the defendants’ motions to block the attorney general’s subpoenas.

The judge ruled the information the state sought would not violate attorney-client privilege, as the defendants had argued. The privilege "does not extend to the payment of attorney fees and expenses," Jimenez ruled.

The judge also rejected the defendants’ arguments that the state was seeking evidence in connection with charges for which they had already been indicted.

Besides Perna and Madonna, alleged ring leaders are Joseph DiNapoli, 75, of Scarsdale, N.Y, Nicodemo Scarfo, 45, of Egg Harbor and Martin Taccetta, 60, of East Hanover.