Former NYC mobster tied to 2 failed Idaho restaurants pleads guilty to fraud charge
A former New York mobster tied to an unfinished downtown Boise restaurant and another failed project in Meridian has pleaded guilty to fraud charges in Arizona.
Frank Capri pleaded guilty Tuesday to single felony counts of conspiracy to commit wire fraud and tax evasion in the U.S. District Court for the District of Arizona. Capri faces a maximum sentence of up to five years in prison and three years of supervised release.
In January 2020, a grand jury in Phoenix indicted Capri on 16 charges, alleging that he took millions in construction costs from restaurants being developed and used the money for himself.
Capri was born Frank Gioia Jr., and was a soldier and “made man” in New York City’s Lucchese crime syndicate, one of five families that dominated mafia activity in the city for decades. His name was changed after he testified against fellow mob members in the 1990s and entered the Witness Protection Program, according to an investigation from the Arizona Republic. He later emerged in Phoenix as a real estate developer.
A plea agreement filed in his case explained that in 2008 Capri was granted a licensing agreement to build and operate restaurants bearing country music star Toby Keith’s name. He required property developers to pay for his company to construct the restaurants.
However, Capri would inflate financial projections to developers so they would agree to higher payments. In return, Capri found ways to reduce construction costs, keeping the difference for himself and his associates, according to law enforcement officials. Capri’s company would also fabricate documents to appear legitimate.
From 2011 to 2015, federal investigators say property developers gave Capri’s company over $12.9 million for branded restaurants that never opened. From those funds, Capri spent over $2.7 million on jewelry alone.
In 2015, Capri expanded his operation to include building themed restaurants based on the country music band Rascal Flatts. One of those restaurants was supposed to be built in The Grove Plaza in downtown Boise. Construction on the restaurant was never finished and it never opened. The Grove Plaza’s owners, Gardner Company, lost roughly $70,000 on the bad deal, according to previous Idaho Statesman reporting.
Additional Statesman reporting shows that Capri’s company was behind a second failed restaurant in the Treasure Valley. In 2014, it tried to open a Toby Keith-themed bar and grill in The Village at Meridian. However, The Village evicted the business before it could open.
Capri’s next court appearance will be for his sentencing, which is set to take place on Jan. 13, 2022 in Phoenix.
This story was originally published August 13, 2021 at 10:38 AM.
