NEW YORK (1010 WINS) -- A group of alleged Bloods gang members were arrested Tuesday for using a fire clean-up business to extort other companies in the industry, according to federal prosecutors.
Eight defendants allegedly used violent threats and their Brooklyn-based business, First Response Cleaning Corp., to control the emergency mitigation services and public adjuster industries in New York City.
Emergency mitigation services clean-up properties after a fire and public adjusters evaluate damage and submit insurance claims.
Prosecutors say the defendants, led by 37-year-old Jatiek Smith, threatened to kill other business owners or their families in order to extort money and control the flow of contracts in the industry.
They also allegedly submitted false insurance claims.
Once they became aware of a federal investigation into the group, they started threatening potential witnesses, according to authorities.
“We are smoking out corruption and violence in the fire mitigation industry with today’s charges,” said U.S. Attorney Damian Williams. “As alleged, the defendants used threats and violence to take over a company and then an industry. Thanks to our law enforcement partners’ work, today’s arrests bring an end to the defendants’ violent scheme.”
Smith, along with the other defendants — Octavio Peralta, Sequan Jackson, Anthony McGee, Kaheen Small, Damon Dore, Hasim Smith, Rahmiek Lacewell and Manuel Pereira — all face racketeering and extortion charges.
Each defendant could face up to 40 years in prison if convicted.
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