Judge pleads in jewelry trafficking conspiracy case

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Judge pleads in jewelry trafficking conspiracy case

July 18, 2007

Central Islip, N.Y.—Former Long Island judge David A. Gross pleaded guilty in federal court Friday to conspiring to launder more than $400,000 that was obtained through the sale of purportedly stolen diamonds and watches, federal prosecutors said.

Authorities say Gross, a former Nassau County district judge, and co-defendants Nicholas M. Gruttadauria, an alleged member of the Genovese crime family, and restaurateur Kim Brady Land, agreed to help an undercover FBI agent, who posing as a trafficker of stolen jewelry, to sell the baubles.

The arrests of all three grew out of a joint investigation by the FBI and the U.S. Attorney's Office into the operation of illegal gambling clubs on Long Island backed by organized crime, according to a release from the U.S. Attorney's office for the Eastern District of New York.

Gross, Gruttadauria and Land planned to launder the proceeds by producing phony invoices to make it appear that the proceeds came from parties hosted at the restaurant owned by Land in Freeport, N.Y., according to authorities.

From January to August 2005, Gross and his co-defendants laundered about $130,000 in cash for the undercover agent and kept 15 to 20 percent for themselves.

In addition, Gross and Gruttadauria agreed to sell more than $280,000 in purportedly stolen jewelry provided by the undercover agent.

Gross faces a maximum prison term of 20 years, three years of supervised release and a $250,000 fine. This spring, Gruttadauria pleaded guilty to money laundering and conspiring to operate an illegal gambling business, and Land pleaded guilty to money-laundering conspiracy.

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