Febrary 7, 2008

Attorney General Corbett announces charges against two Allegheny County men accused of participating in a money laundering and drug organization

HARRISBURG - Two Allegheny County men were charged today with operating and participating in a cocaine and marijuana distribution ring as well as a money laundering organization in the Pittsburgh area.

Attorney General Tom Corbett identified the defendants as Jeffrey Pusateri, 30, 608 Spring St., North Braddock and Adam Majewski, 28, 1508 Ohio St., McKeesport.

Evidence and testimony was presented to a statewide investigating grand jury, which recommended the criminal charges being filed today.

The grand jury found that between August 1999 and August 2006, Pusateri and his co-conspirators operated a marijuana and cocaine distribution network and often traveled to Texas to purchase up to 25-35 pounds of marijuana as well as ½ kilo to kilo amounts of cocaine at a time.

According to the charges, a confidential informant (CI) helped investigators make three controlled purchases of cocaine from Pusateri and his co-conspirators, totaling 463 grams of cocaine with an estimated street value of $43,600 as well as the seizure of approximately 129 grams of cocaine with an estimated street value of $12,900.

Corbett said that on June 8, 2006, Pusateri allegedly "fronted" 70 grams of cocaine to a confidential informant, who delivered $1,500 as partial payment for the drugs two days later.

The grand jury found that during a second controlled delivery on June 22, 2006, Pusateri delivered a blue bag containing approximately 140 grams of cocaine to the CI while Majewski stood a few feet from the transaction acting as a lookout.  Pusateri requested $5,000 within a week for the fronted cocaine.

The charges state that the third and final transaction occurred on July 6, 2006 at Pusateri's residence.  He removed a blue box from a Dodge Neon and placed it inside the CI's unoccupied vehicle. The box contained approximately 253 grams of cocaine.

Corbett said that on Aug. 16, 2006, agents and detectives executed an arrest warrant for Pusateri.  He allegedly refused to answer the door and barricaded the residence, but was eventually taken into custody. Majewski was arrested after showing up at Pusateri's residence the same day.

Agents executed a search warrant of Pusateri's residence and recovered approximately 129 grams of cocaine, marijuana, inositol (a cutting agent for cocaine) and a shotgun with ammunition.

The grand jury found that Pusateri allegedly engaged in an organized and calculated effort to launder drug money through investing and renovating real estate. Pusateri allegedly started a construction business around 2003-2004 called Pusateri Construction Business Partners.

According to the charges over a period of approximately 19 months, Pusateri made numerous cash deposits totaling $117,602 in his business account.  Allegheny County Real Estate records show that Pusateri owned 10 properties in 2006 and allegedly transferred eight of those properties to his mother, Mary Ellen Pusateri, six days after his initial arrest.

Corbett said the sale price listed for each property was only $100.

The grand jury found that Pusateri opened an investment account in May 2003 with a $30,000 deposit. In July 2006 the value of the account was $52,442.  Agents said that after Pusateri's arrest and release in August 2006, account statements showed two issuance checks to Jeffrey Pusateri, effectively emptying the investment account.

Corbett said that 15 days after his arrest, bank records show a $20,000 cash deposit into Pusateri's mother's checking account.

According to testimony, bank records also show that in September 2006, Mary Ellen Pusateri opened a money market account with a more than $60,000 deposit, which consisted of a check for $9,000 from her checking account and two issuance checks written out to her son.

Jeffrey Pusateri is charged with four counts of possession with the intent to deliver cocaine and marijuana, three counts of delivery of a controlled substance, two counts of dealing in the proceeds of illegal activity, two counts of corrupt organizations, two counts of criminal conspiracy and one count of criminal attempt.

Majewski is charged with two counts of corrupt organization, one count of criminal conspiracy, one count of possession with the intent to deliver cocaine and one count of delivery of a controlled substance.

Corbett noted that this is part of a continuing investigation.

Corbett thanked the Pittsburgh Police Department, the Wilkinsburg Police Department and the Swissvale Police Department for their assistance with the investigation.

The case will be prosecuted in Allegheny County by Deputy Attorney General Maureen Sheehan-Balchon of the Attorney General's Drug Strike Force Section.

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(A person charged with a crime is presumed innocent until proven guilty.)