CASINO CHIPS TIED TO DRUGS

City Man Linked To Vegas Scheme

WATERBURY -- A Florida man and the United States government are fighting in
federal court over $92,000 in Las Vegas casino chips that federal agents
seized last year from the bathroom of a spacious Waterbury home.

The civil case involving the government's attempt to seize $92,000 in
casino chips plus $3,946 in cash from Joseph DeMarco of Florida stems from
a criminal investigation into alleged drug-trafficking activities of David
DiStasio, 44, of 283 Maybrook Road.

"Based on law enforcement training and experience, it is common practice
for drug dealers to use casino chips to purchase drugs or launder money
from drug transactions," Assistant U.S. Attorney David X. Sullivan wrote in
a motion asking the court to assign the money to the government.

The criminal case, involving charges that DiStasio and DeMarco conspired to
distribute large quanti-ties of marijuana, relies on a "cooperating
witness" who was wired for sound by federal agents last year while trying
to sell hundreds of pounds of marijuana to the pair at DiStasio's home.

The sale, scheduled to take place Oct. 14, 1998, never happened because
DiStasio became suspicious of the government's witness, according to court
documents. Federal agents nonetheless arrested DiStasio and DeMarco that
day, charging each with conspiracy to distribute marijuana. Authorities say
they caught the pair on tape discussing their intentions to buy hundreds of
pounds of pot.

The two are free on bond while criminal charges are pending at Bridgeport
federal court.

Meanwhile, DeMarco, a self-proclaimed professional gambler, is trying to
prevent the government from taking ownership of the casino chips and cash
they found Oct. 14, 1998 while raiding DiStasio's luxury split-level ranch
on Maybrook Road in the exclusive Country Club Road section.

On Nov. 18, 1998, the government converted the chips -- $51,000 from the
Mirage Casino, $31,000 from the MGM Grand Hotel and $10,000 from Bally's
Casino -- into cash, now in the FBI's hands.

Through his attorney, Howard Sohn of Miami, Fla., DeMarco is trying to get
his money back -- $95,946 in all. Sohn did not return a call Friday seeking
comment.

Documents in Bridgeport federal court say that DeMarco initially told
investigators the casino chips belonged to a group of people who gave him
money to gamble at Foxwoods. He later changed his story and said the chips
were his.

The investigation began April 1998 when a person, described in court
documents as a "cooperating witness," gave FBI agents information into
DiStasio's alleged drug activities.

The witness claimed to have sold between 150 and 200 pounds of marijuana a
week to DiStasio. The witness also claimed that DiStasio sold 1,500 pounds
of marijuana a week to customers across the country, court records show.
DiStasio could not be reached for comment.

The witness met with DiStasio on Sept. 1, 1998 and discussed supplying him
with marijuana in Nevada, Arizona and Connecticut. The witness told
authorities that DiStasio said he wanted 1,000 pounds of high-quality
marijuana a week.

When they met on Sept. 2 at DiStasio's home, the witness was wearing a
recording device and was under surveillance by federal agents. The witness
brought about 40 pounds of pot for DiStasio to inspect, but he said he
wanted a higher quality and would be willing to buy 800 pounds of it, court
records show.

The witness and DiStasio then arranged to meet Sept. 24 in Las Vegas to
discuss the sale of 800 pounds of marijuana, which he would distribute in
Arizona and Nevada. But DiStasio failed to show for the meeting, telling
the witness that authorities detained him at the airport and seized his money.

On Oct. 6, the government's confidential witness arranged over the phone to
sell 500 pounds of marijuana to DiStasio. On Oct. 14, while wearing the
recording device, the witness brought a 23-pound sample to DiStasio's
house. The two met outside, then DiStasio took a sample inside to show to a
customer, later identified as DeMarco.

DiStasio returned a short time later and told the witness his customer
didn't like the quality and wanted to speak directly with the witness. The
witness went inside, met DeMarco, went back outside for a higher grade of
marijuana and gave it to DiStasio, who brought it to DeMarco.

The witness was then told to call back in an hour. When the witness called
back from a pay phone, DiStasio said he had a customer and asked the
witness to return.

At this point, authorities suspected DiStasio was on to them, court
documents say, because they saw DiStasio and two other men in a Jeep Grand
Cherokee drive by the pay phone and the surveillance vehicle. DiStasio was
in the Jeep's back seat, DeMarco was in the front passenger seat and
another person was driving.

As FBI agents followed the Jeep, the driver tried to elude them but failed.
Agents stopped the car and arrested DiStasio and DeMarco. A short time
later, they raided DiStasio's home and found the casino chips and cash in a
bathroom.

Although he is on tape discussing a marijuana buy, DeMarco denied he had
anything to do with a drug deal, authorities say.