Alleged Mafia leader faces 36 new charges

One of the alleged Mafia leaders arrested in the Project Colisée police sweep faces 36 new criminal charges, including an attempt to extort money from John Xanthoudakis, founder of the troubled Norshield Financial Group.

The new charges were filed yesterday during a brief Quebec Court hearing at the Montreal courthouse, where Francesco Del Balso, 37, reversed his previous stance and waived his right to a preliminary inquiry.

Del Balso was one of six men singled out as the alleged leaders of criminal conspiracies when the Combined Forces Special Enforcement Unit arrested more than 80 people on Nov. 22, 2006.

In a case that is pending, Del Balso and the five others, including Nicolo Rizzuto, the octogenarian father of reputed Montreal Mafia boss Vito Rizzuto, face five counts of acting as leaders in criminal conspiracies such as bookmaking, extortion and drug smuggling.

But prosecutor Yvan Poulin informed Judge André Perreault that Del Balso now faces 36 additional charges. All stem from Project Colisée, the three-year-long investigation that targeted the Montreal Mafia.

Two counts are related to an extortion attempt on Xanthoudakis, head of the hedge fund company now in receivership.

Xanthoudakis and two other Norshield executives face a hearing in May before the Ontario Securities Commission into allegations they moved $215 million worth of investors' money to a complicated web of offshore entities.

Xanthoudakis was attacked in a lawyer's office on Nov. 25, 2005, shortly after Norshield was placed under receivership and had its assets frozen.

Del Balso is accused of committing extortion, through threats or violence, from Nov. 24, 2005, to March 2006. He is also accused of committing extortion against Xanthoudakis for the benefit of a criminal organization.

Evidence gathered during the Project Colisée investigation related to the alleged extortion is under a publication ban.

Besides the case involving the Norshield executive, Del Balso faces charges of extortion involving six other men.

Nineteen of the 36 new charges allege Del Balso was involved in committing crimes for the benefit of a criminal organization.

Three other counts allege Del Balso took part in three cocaine smuggling conspiracies, including one through Trudeau airport.

Del Balso is also charged with being an accomplice after the fact and with obstructing justice in a hit-and-run in Laval on Sept. 23, 2003.

Two other counts are related to an illegal gaming house Del Balso is alleged to have operated on Jean Talon St. E. in St. Léonard from August 2005 to November 2006.

Del Balso had been scheduled to have a lengthy preliminary inquiry that was to begin in March. Instead, he agreed yesterday to merge his case again with the other five alleged Mob leaders.

A new court date for all six has been set for Jan. 17.

pcherry@thegazette.canwest.com