Mira Wassef | mwassef@siadvance.com

Controversial lawyer busted

STATEN ISLAND, N.Y. — Flamboyant lawyer Richard Luthmann may fancy himself a champion of the little guy, but federal prosecutors say he is little more than a "violent criminal and fraudster" who, along with accomplices, bilked customers in a scrap-metal business they had formed, had a victim threatened at gunpoint, and took advantage of a blind client in a bid to hide their scheme.

Luthmann, 38, who two years ago famously sought to resolve a civil lawsuit through "trial by combat," was arrested Friday morning by the FBI on a slew of charges, including kidnapping, kidnapping conspiracy, money laundering, brandishing a firearm to commit a crime, aggravated identity theft and extortion conspiracy.

The scam was launched in the summer of 2015, between Luthmann, co-defendant George Padula III, 29, of Staten Island; Michael Beck, 59, of Staten Island; and an unidentified co-conspirator, who sold scrap metals to overseas clients, said an indictment filed in Brooklyn federal court.

Luthmann, 38, is a danger to the community, a flight risk and could even engage in witness tampering, prosecutors said during the brief proceeding in Brooklyn federal court Friday.

"Every witness the government has interviewed has expressed fear of Luthmann -- ranging from fear that he will harm them physically to fear that he will ruin their reputations through frivolous lawsuits or online threats," prosecutors said in court documents.

Luthmann and his co-defendants were all temporarily held without bail until defense attorneys make bail arguments next week.

A fourth defendant, New Jersey resident Stephen Cotogno, 48, was charged in the same wire fraud conspiracy.

In a detention memo, federal prosecutors alleged Luthmann's "charged conduct in this case involves violence, threats based on organized crime, and the use of mafia-style tactics."

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Left: Luthmann strikes a pose in his Castleton Corners law office. (Staten Island Advance/Amanda Steen). Right: Bob Odenkirk in "Better Call Saul." (AMC)

Call Me Saul from "Breaking Bad"

Throughout the fraud, Richard Luthmann referred to himself as “Saul” to his co-conspirators, a reference to the character Saul Goodman on the television shows “Breaking Bad" and "Better Call Saul." The TV character is a corrupt lawyer for a methamphetamine cooking and distribution ring, and helps his clients launder money, prosecutors said.

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Photo courtesy of the U.S. Attorney's Office

Large man banging, breaking doors

On Wednesday, prosecutors allege Luthmann sent "a server" to an unidentified individual's home at 2 a.m. to serve legal papers related to a "Facebook lawsuit" (see diagram below for background on his $10 million suit) filed by Luthmann. The server, described as a large man with a Russian accent, did not identify himself, started banging so loudly and aggressively on the door, that it broke the door frame, officials said.

The individual called 911, and the operator heard the banging, the operator told the man’s wife to hide in the attic with her children until the police arrived. The server left just before the police arrived. The next morning, the "John Doe" left for work and 10 minutes later, the server returned to his home and taped papers to the door, prosecutors said.

This is not the first time Luthmann has threatened this man.

In December 2016, the man, who runs a design business, was hired to do a project for the daughter of his "Investigator" (referenced in the docs as a retired NYPD detective with a gun who supplied "muscle" for Luthmann), and she gave him a deposit. After changing her mind, she asked for the deposit back, but the man said it was non-refundable, said the filing.

With Padula present in his office, Luthmann then called the man, and told him that his Investigator would shoot him if he did not give him back the deposit and that Luthmann would not be able to control the Investigator. The Investigator later called the business man and said, “I will run into you,” prosecutors said.

In the summer, Luthmann threatened the same man about paying his legal fees. During a meeting at Luthmann’s office, the lawyer’s driver/bodyguard entered the room with Luthmann’s wife and demanded he pay his fees, said the filing.

Luthmann then had the witness arrested for petit larceny after the man asked for his legal files, prosecutors said.

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This diagram was distributed by Luthmann on Sept. 13, 2017, at the Richmond County Fair. (Photo by Steve White)

Gun in 'f------ desk drawer'

In May, Richard Luthmann had a falling out with a female client who hired him to represent her mother in an estate case. Luthmann and the mother were then engaged in a fee dispute, and he refused to release the estate money which was in escrow, officials said.

The parties, including Luthmann’s wife, met at a restaurant, and he told the client he felt threatened when her brother showed up at his office.

Padula, his co-defendant in the case, was seated at another table nearby.

Authorities claim Luthmann discussed his gun during the meeting, and on a recording can be heard using the words, “f-----g desk drawer.” Luthmann also mentions that he has the “Investigator” walking around his office with a gun, officials said.

Luthmann also threatened to send the Chinese mafia after the woman’s brother. While trying to calm him down, the woman said her mother’s lawyer was going to after Luthmann’s license. Luthmann stated that he would have the “Chinese mafia” rape and kill her female lawyer if the lawyer went after his license, according to court records.

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Bill Lyons

'Wet Tees. Nicole won't be happy'

In private Facebook message exchanges with Assemblyman Ron Castorina, Luthmann sent Castorina a lewd Photoshopped image of Malliotakis, authorities allege.

Luthmann told Castorina he was going to bring a water gun to a picnic where Malliotakis was going to be present and stated, “I'm bringing a super-soaker to the South Beach Civic Association Picnic tomorrow . . . Wet tees! Nicole will not be happy!” On Luthmann’s Facebook page, Luthmann can be seen aiming a water gun at Malliotakis at the same picnic, authorities said.

In another private message to Castorina, prosecutors allege Luthmann referenced an anti-Semitic slur he used when speaking to Board of Elections General Counsel Steven Richman saying, “I called Steve Richman a Jew-Rat . . . But passed it off as mispronounced Jurat . . . It’s not like there is a Jew-rat right in front of me.”

In those messages, according to the New York Times, Luthmann sent Castorina a Photoshopped image of Materna’s face superimposed over a pornographic image, making it look as if Materna was performing a sex act, said the filing.

When Castorina expressed concern about the image being posted, Luthmann stated, “Dark web. Untraceable IP,” officials allege.

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Luthmann gets emotional watching the inauguration on Jan. 20, 2017 (Staten Island Advance/Jan Somma-Hammel)

Hit men and 'Chinese mafia' death threats

Luthmann also tried to hire Padula to kill Kevin Elkins, the former executive director of the Democratic Committee of Richmond County, said the court papers.

"Luthmann has a history of using scare tactics and threats of violence to intimidate others. On at least two occasions, Luthmann has claimed to have a gun in his desk drawer. Luthmann has also told or implied to victims that the "Chinese mafia," Padula or a private investigator, who is a former NYPD detective and carries a gun, would hurt them on Luthmann's behalf," prosecutors said in court records filed Friday.

In addition to the Chinese mafia, Luthmann allegedly is also providing "commissary funds" to at least two incarcerated associates of La Cosa Nostra, Lucchese associate Joseph Cutaia and Gambino associate Gasper Marciante, as seen in Western Union records, said the detention memo.

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Luthmann gathered at Casa Belvedere to watch the inauguration on Jan. 20, 2017. (Staten island Advance/ Jan Somma-Hammel)

Strippers and La Cosa Nostra connections

Prosecutors are asking the defendants be remanded permanently based on a slew of allegations, including Luthmann's alleged ties to La Cosa Nostra, his bribes and his violent tendencies.

When District Attorney Michael E. McMahon was running for office, Luthmann allegedly tried to pay an exotic dancer $10,000 to say McMahon raped her, officials said.

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Staten Island Advance/Anthony DePrimo

Luthmann claims mobsters came to his house

Richard Luthmann began a public feud with John Gulino, Chairman of the Democratic Committee of Richmond County, after his failed 2013 bid for Staten Island Borough President, the documents said.

Luthmann launched an aggressive social media campaign against Gulino, which included, for example, purchasing cardboard cutouts of Gulino’s likeness (seen below) and posting a picture of one on Twitter with the comment, “#NewArrival just in time for #huntingseason life-sized #targets for #targetpractice,” authorities claim.

Behind these social media postings, the feds allege Luthmann asked Padula to beat up Gulino.

Luthmann reportedly admitted filing a discrimination suit against Gulino in an attempt to harass him.

During the case, officials said Luthmann filed a letter explaining he didn't file an amended complaint in time because mobsters had come to his office, whom he believed had been sent by Gulino, the detention memo states.

Luthmann said this experience left him crippled with fear and anxiety and unable to timely file court documents in the case. But, the filing said, Luthmann posted several photos on social media showing him at parties during the time he said he was unable to work.

Prosecutors said Luthmann’s letter claiming to have been threatened was written right at the peak of the scrap metal fraud, and Luthmann was actively facilitating financial transactions for the fraud scheme on the day the letter was written and over the previous two weeks.

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Mira Wassef | mwassef@siadvance.com

Padula claims to have 'shot up" store on Staten Island

Luthmann's co-defendant, George Padula, is a flight risk because of his mob contacts and gun possession, prosecutors said.

Padula continues to speak to Luchese crime family associate Joseph Cutaia, of Staten Island, who is serving a 20-year stint in prison for his role in violent robberies, officials said.

In 2012, Padula was arrested for selling an AK-47 and a revolver to a cooperating witness, court papers said. Although Padula was not charged, authorities have photos of the sales, including photographs of the recovered firearms and audio recordings of the gun buys, said the filing.

A witness has also stated that the witness saw Padula with a gun on two other occasions, and that on another occasion Padula claimed to have “shot up” a store on Staten Island, prosecutors said.

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NYS Reform Party suspends Luthmann

In a statement to the Advance, the organization's secretary and spokesman, Frank Morano, said:

"The Executive Committee of the New York State Reform Party has voted unanimously to suspend Richard Luthmann from his position as Law Chairman and any other position in the leadership of the New York State Reform Party pending the outcome of his criminal case."

"Like all citizens, Mr. Luthmann is entitled to the presumption of innocence, but his continued involvement in the party leadership would be a distraction from the important work of electing reform minded candidates across the state and advancing a reform agenda."