PHILADELPHIA
A federal judge sentenced two leaders of a violent loan sharking and illegal gambling ring that operated out of several Philadelphia businesses to prison, according to officials.
U.S. District Court Judge William Yohn sentenced Ylli Gjeli, 49, of Philadelphia,to 14 years in prison, officials said.
Fatimir Mustafaraj, 42, also of Philadelphia, was sentenced to 12 years and three months in prison.
Evidence presented at trial indicated that from October 2011 to 2013, the enterprise extended 125 usurious loans totaling $1.78 million with annual interest rates ranging from 104 percent to 395 percent.
And, from February 2007 to August 2013, the organization’s online sports betting website contributed more than $2.9 million in gross profits, officials said.
The members and associates of this criminal ring threatened victims in various ways:
- Threatening customers with dangerous weapons such as a firearm and hatchet
- Using implied threats and intimidation
- Telling customers that if they did not pay their debts someone would kill them, “break your legs,” or physically harm them or their family members in some other way
- Physically assaulting subordinate members and associates.
The defendants attempted to conceal the existence and operations of the enterprise from law enforcement by:
- Limiting their discussions of criminal activities when on the phone using cryptic and coded language to describe criminal activities
- Conducting pat-downs and body searches of customers to check for weapons and recording devices
- Conducting the enterprise’s transactions primarily in cash.
The defendants generated money by making and collecting on loans with usurious rates of interest; using intimidation, threats, and violence to make and collect on loans; and making loans to betting customers whose debts were incurred through the enterprise’s illegal gambling business, according to authorities.
Here is the evidence surrounding this case, officials stated:
On December 15, 2014, a federal jury returned guilty verdicts against Gjeli, Mustafaraj and their co-defendants, Gezim Asllani and Rezart Rahmi Telushi, on charges of racketeering conspiracy, racketeering collection of unlawful debt, and collections of extensions of credit by extortionate means.
Gjeli, Mustafaraj, and Asllani were also convicted of making extortionate extensions of credit; and Gjeli and Mustafaraj were also convicted of operating an illegal gambling business.
The Lion Bar & Grill in Philadelphia was used as a front for the enterprise. The enterprise also used Blackbird Café and “Ylli’s 2 Brothers” to conduct illegal loan sharking and gambling activities.
Gjeli was a leader and “boss” of the multi-million-dollar criminal organization; Mustafaraj, a/k/a “Tony,” was a leader and “muscle.”
Asllani and Telushi were debt collectors who assisted Gjeli and Mustafaraj in making loans and regularly collected weekly loan payments from customers.
A sentencing hearing is scheduled for June 15 for Telushi and for September for Asllani. Five co-defendants who pleaded guilty are also awaiting sentencing.