Jun 05 2007
Rizzutos say banks now shun their business
(Adrian Humphreys - National PostSunday) Two of Canada’s largest banks have refused to open investment accounts for two children of Vito Rizzuto, who has been named in court as head of the Mafia in Canada, family members say.
Leonardo and Bettina Rizzuto, adult children of a man recently imprisoned in New York for his role in three gangland slayings, say they have lost their long-time financial advisor.
The move came shortly after the high-profile arrests of two other family members in Montreal during a major anti-organized crime operation.
After moving their stock portfolio to a second bank, that account was also rejected, they say.
The two Rizzuto children, who are both lawyers in good standing with the Quebec bar association, say their difficulties stem from the publication of a book and subsequent newspaper stories regarding their father and some of his associates.
Mr. and Ms. Rizzuto are suing the National Post, a reporter, the authors and publisher of The Sixth Family: The Collapse of the New York Mafia and the Rise of Vito Rizzuto and others for nearly $1-million in alleged damages.
The claims have not been tested in court.
Leonardo, youngest of two sons, and Bettina, the only daughter, are children of Vito Rizzuto, 61, who has been named by turncoat Mafia members in New York as the most powerful mobster in Canada and by the Canadian government as the Godfather of the Mafia.
A stock portfolio that appears to have been a joint account of Mr. and Ms. Rizzuto had been handled for about 10 years by the same financial advisor, Joseph Farruggia, who worked at the National Bank, according to their statement of claim.
In December, 2006, Mr. Farruggia moved to the TD Bank and had client portfolios transferred to his new employer, including the Rizzuto account, the claim says.
“The representatives of the Toronto Dominion Bank subsequently advised Mr. Farruggia that they would not agree to open up an account for and on behalf of [Mr. and Ms. Rizzuto],” the claim says.
The two Rizzuto siblings were then referred to Philippe Doucet, a financial advisor at RBC Dominion Securities, a division of the Royal Bank of Canada. Mr. Doucet agreed to open an account, the claim says: “There seemed to be no problem in regard to him managing and handling their account.”
The company had a different view, according to the claim.
“Suddenly and without any warning,” they were told that RBC had refused the account, “without any reason” given.
Citing privacy concerns, the banks declined to discuss the allegation.
“We can’t comment on specific clients so I really can’t say much about it,” said Lisa Hodgins, spokeswoman for TD Waterhouse, the private investment arm of TD Bank.
“In general, we reserve the right to accept or decline client business based on our own discretion,” she said. Ms. Hodgins confirmed that Mr. Farruggia is an investment advisor at TD.
Beja Rodeck, a spokeswoman for RBC, said: “I am not able to discuss that particular situation.”
The two Rizzuto siblings allege that TD Bank dropped them about five months after the publication of The Sixth Family. It also occurred a few weeks after police announced Project Colise, described by the RCMP as “one of the most important police operations in the history of Canada.”
Among the more than 70 people arrested in that police sweep were Nicolo Rizzuto, the grandfather of Mr. and Ms. Rizzuto, and Paolo Renda, their uncle. The two men were alleged to be among the ringleaders of an organization that is “one of the pinnacles of organized crime in this country,” the RCMP said at the time.
RBC in particular might be sensitive to the Rizzuto name.
As police arrested Nicolo Rizzuto on gangsterism, drug, extortion and gambling charges, tax officials moved against his assets in the Federal Court of Canada. Revenue officials alleged he had spent years avoiding the tax agency, followed by a period of filing tax returns that did not seem to match his lifestyle.
Officials claim the Rizzuto patriarch had about $1.8-million invested with RBC Dominion Securities and the National Bank of Canada.
Included in the exhibits entered into the Federal Court are account summaries for his portfolio with RBC.
Authorities were also suspicious that no funds in foreign accounts were listed. A government document claims there is evidence of extensive offshore financial holdings, including more than $5-million in Swiss banks under the names of friends and relatives.
Nicolo Rizzuto’s tax matter is taking a back seat to his criminal charges.
With his health suffering, he will seek release on bail until his charges can be argued in court. A bail hearing is scheduled for mid-August, the only one for any of the six alleged ringleaders.
No court dates are set for either Nicolo Rizzuto’s tax hearing or for Mr. and Ms. Rizzuto’s lawsuit.
By Adrian Humphreys - National PostSunday, June 03, 2007 - http://www.canada.com/nationalpost/news/story.html?id=9081fb5c-3192-40b8-8051-b6efacc09818&k=0
