The United States charged Gary Feola and eighteen co-defendants in a first superseding indictment filed on March 27, 1986, with having operated a cocaine and marijuana trafficking ring, centered in Westchester County and Manhattan, which distributed narcotics during 1985. Count One charged nineteen defendants with conspiracy to distribute cocaine between January 1, 1985 and November 26, 1985, in violation of 21 U.S.C. § 846. Count Two charged four defendants with conspiracy to distribute marijuana during the same period. Additional counts charged possession with intent to distribute, firearms possession by a convicted felon, and forfeiture of real and personal property.
Several principal defendants had prior encounters with the criminal justice system. A 1978 investigation led to John Farese's conviction for selling cocaine, and he implicated Gary Feola. Feola was arrested in a 1981 investigation of John Cercena and convicted in 1982 of conspiracy in the fourth degree in connection with an attempted sale of three kilograms of cocaine. The 1985 investigation began with pen register surveillance of Farese's telephone in April-May and June-August 1985, which revealed numerous calls to individuals with known criminal records or suspected of dealing in narcotics, including 64 calls to Cercena's phone and 47 to Feola's.
Detective Robert Magaletti submitted affidavits relying on statements from named informants Dominic Carbone and Vincent James Tarantelli, as well as three confidential informants. CI #1 claimed to have lived in Farese's house for several years between 1977 and 1984, worked as a mule transporting cocaine from Florida to Westchester County, and provided details of transactions involving Feola, Farese, and Cercena. On the basis of these affidavits, New York Supreme Court Justice Dachenhausen issued Order A on August 14, 1985, authorizing interception of communications over John Farese's telephone.
Wiretap interceptions continued until November 26, 1985. On November 21 and 22, 1985, search warrants were executed at fifteen residences. The searches uncovered nearly two kilograms of high purity cocaine, 48.2 grams of marijuana, and $82,730 in currency from Noemi Fernandez's apartment in New Jersey; $35,000 in currency, 4.3 grams of cocaine, and explicit drug records from Gary Feola's apartment at 300 East 54th Street in Manhattan; three firearms and narcotics paraphernalia from Steven Gallo's residences; $119,002 in currency and cocaine from Edmund Rosner's apartment; and similar quantities of drugs, cash, diluents, and records from the homes of other defendants including Daniel Wall, Ralph Feola Sr., Ira Neuringer, John Cercena, Arthur McGuire, and John Farese.
Defendants were arrested on November 26, 1985. They filed numerous pre-trial motions that became fully submitted on December 23, 1986, including motions to suppress the fruits of the eleven eavesdropping orders on grounds of lack of probable cause, staleness, informant unreliability, inadequate minimization, improper sealing, and other procedural defects; motions to suppress physical evidence seized in the searches; motions for severance of counts and defendants; motions for a Franks hearing; and extensive discovery requests. The court issued its memorandum and order resolving the motions on January 7, 1987.