Government fined $101 million over convictions

updated 9:52 p.m. ET July 26, 2007

BOSTON - In a stinging rebuke of the FBI, a federal judge on Thursday ordered the government to pay a record judgment of nearly $102 million because agents withheld evidence that would have kept four men from spending decades in prison for a mob murder they did not commit.

Judge Nancy Gertner told a packed courtroom that agents were trying to protect informants when they encouraged a witness to lie, then withheld evidence they knew could prove the four men were not involved in the murder of Edward “Teddy” Deegan, a small-time thug shot in an alley.

Gertner said Boston FBI agents knew mob hitman Joseph “The Animal” Barboza lied when he named Joseph Salvati, Peter Limone, Henry Tameleo and Louis Greco as Deegan’s killers. She said the FBI considered the four “collateral damage” in its war against the Mafia, the bureau’s top priority in the 1960s.

Tameleo and Greco died behind bars, and Salvati and Li`mone spent three decades in prison before they were exonerated in 2001. Salvati, Limone and the families of the other men sued the federal government for malicious prosecution.

“Do I want the money? Yes, I want my children, my grandchildren to have things I didn’t have, but nothing can compensate for what they’ve done,” said Salvati, 75.

“It’s been a long time coming,” said Limone, 73. “What I’ve been through — I hope it never happens to anyone else.”

The latest in a string
The case is only the latest to highlight the cozy relationship Boston mobsters enjoyed with FBI agents for decades. Former Boston agent John Connolly was sentenced in 2002 to 10 years in prison for his role in protecting two organized crime kingpins, including one who remains a fugitive.

Gertner said FBI agents Dennis Condon and H. Paul Rico not only withheld evidence of Barboza’s lie, but told state prosecutors who were handling the Deegan murder investigation that they had checked out Barboza’s story and it was true.

“The FBI’s misconduct was clearly the sole cause of this conviction,” the judge said.

The government had argued federal authorities had no duty to share information with state officials who prosecuted the men. Federal authorities cannot be held responsible for the results of a state prosecution, a Justice Department lawyer said.

Gertner rejected that argument.

“The government’s position is, in a word, absurd,” she said.

A Boston FBI spokeswoman referred calls to the Department of Justice. Charles Miller, a spokesman for the Justice Department, said officials would have no immediate comment.

Largest award in this type of case
Peter Neufeld, co-founder of the Innocence Project, a New York-based legal advocacy group that specializes in overturning wrongful convictions, said the $101.75 million award is the largest ever in a wrongful-conviction case.

Gertner awarded $26 million to Limone, $29 million to Salvati, $13 million to Tameleo’s estate and $28 million to Greco’s estate. The wives of Limone and Salvati and the estate of Tameleo’s deceased wife each received slightly more than $1 million. The men’s 10 children were each awarded $250,000.

Limone and Salvati stared straight ahead as the judge announced her ruling, but a gasp was heard from the area where their friends and family were sitting when Gertner said how much the government would be forced to pay.

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