Two Texas brothers sentenced for role in Scarfo business fraud

An executive and a lawyer who participated in the takeover of a Texas financial firm and a $14 million fraud that benefited the Scarfo and Lucchese crime families were sentenced Thursday in U.S. District Court in Camden.

First Plus Financial CEO John Maxwell, 63, of Houston, was sentenced to 10 years in prison. His brother, attorney William Maxwell, 56, of Dallas, was sentenced to 20 years.

Both were convicted of racketeering, conspiracy, and related offenses during a six-month trial last year that detailed a sophisticated crime operation led by Nicodemo S. Scarfo Jr., whose father is a former Philadelphia crime boss.

The younger Scarfo, 50, of Galloway, N.J., was sentenced Tuesday to 30 years. His father, who is serving a 50-year sentence on an unrelated racketeering case, was named as an unindicted conspirator.

An associate of the Scarfo family, Salvatore Pelullo, 48, of Elkins Park, was sentenced to 30 years Wednesday. The defendants have been ordered to make $14 million in restitution.

Prosecutors said Scarfo and Pelullo took an interest in First Plus Financial. They threatened to harm executives and their families if they did not relinquish control of the company's finances, prosecutors said. The firm bought and sold mortgages.

After the company was turned over, the Maxwells were hired. Within a year of the 2007-08 takeover, millions had been siphoned from the company through consulting contracts. Scarfo was paid $33,000 a month, plus expenses, but did no legitimate work, authorities said. Eventually, the company declared bankruptcy.

In addition to the four sentenced this week, four other defendants pleaded guilty to charges before the trial: Scarfo's cousin John Parisi; Scarfo's wife, Lisa Marie; Cory Leshner, a West Reading, Pa., lawyer; and Howard Drossner, an associate of Pelullo's.