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What happened
Most of the defendants were arraigned yesterday in State Supreme Court on Staten Island before Justice Leonard P. Rienzi, who set bail for Mr. Farella at $400,000. He set bail for Mr. Pioppo at $80,000 and for Mr. Galbo at $40,000. Mr. Farella's lawyer, Vincent J. Romano, said he and his client knew about the investigation since the first search warrant in the investigation of the prostitution ring was executed in October 2002. But Mr. Romano insisted that his client's businesses were lawful and that he was unaware that anyone who worked for him was exchanging sex for money. ''It was a business,'' Mr. Romano said. ''It was a legitimate business.'' He said his client ''didn't authorize, force or coerce'' anyone to take part in any illegal activity. ''If it happened, my client didn't know it happened,'' the lawyer added. The women were dispatched from storefront offices in Staten Island and from a Brooklyn apartment and would be dropped off by the limousine drivers, mostly in Brooklyn, Queens and Staten Island, the law enforcement official said. Two women would ride with each driver, and they would work 12-hour shifts, the official said. They carried a device inside the car to make an imprint of customers' credit cards, the official said. At the end of the night, most of the drivers and the women would come together to settle up at a Dunkin' Donuts shop or a diner in Brooklyn, with as many as six of the cars parked outside as the credit-card receipts and cash were counted and the women were given their share of roughly one-third of the proceeds, the official said.
Response and intervention
Investigators with the task force came across the ring while looking into the activities of a Gambino crime family gambling operation, the law enforcement official said. They had wiretapped a Gambino-linked social club on Fingerboard Road in Staten Island as part of that inquiry and saw the prostitution ring's leader, Frank Farella, 44, of Staten Island, visiting at the club, the official said. An indictment charging Mr. Farella and others with enterprise corruption identifies him as the owner and leader of the illegal enterprise, and John Pioppo, 42, of Staten Island, and Mario Galbo, 58, of Brooklyn, as senior managers responsible for day-to-day operations and overseeing the midlevel office supervisors.