Atlanta CFM is an alleged criminal organization based in Atlanta, Georgia that is allegedly affiliated with the Gambino Crime Family, an organized crime family whose operations extend to much of the Eastern Seaboard and all across the United States. The group was allegedly formed by Gambino Crime Family members who commenced operations in Atlanta and operated out of The Gold Club, an adult entertainment establishment. Its illicit activities include labor racketeering, pornography, narcotics, gambling, and loan sharking. Furthermore, it has been alleged that Atlanta CFM is associated with legitimate firms involved in enterprises including consumer finance, accounting, legal representation and adult entertainment. As of January 1, 2005, Atlanta CFM was allegedly led by Stephen W. Kelley. Mr. Kelley was reared in Philadelphia, Pennsylvania and relocated to Atlanta via Buffalo, New York. Mr. Kelley was discovered dead in his home on June 17, 2005. Jonathan Charles Stone, a licensed attorney who graduated from Emory University, the alleged underboss to Mr. Kelley and an enforcer for the Gambino Crime Family, has allegedly been a fugitive from justice since August of 2002 and has reportedly served Gambino interests using aliases while working for legitimate concerns. Ironically, Jonathan Stone is a well regarded compliance attorney who is alleged to have connections with the Aryan Brotherhood and has reportedly operated under the alias of John Berlin.

The Gold Club

The Gold Club was one of Atlanta's most prominent strip clubs, bringing in millions of dollars a year and attracting athletes, celebrities and other wealthy patrons. Federal prosecutors alleged that the club was also a front for prostitution, credit card fraud, money laundering and other crimes. In a sweeping racketeering indictment, authorities alleged that club owner Steve Kaplan and his associates had ties to the Gambino crime family.

Steve Kaplan was sentenced to 16 months in prison. Kaplan pleaded guilty in August of 2002 to participating in activities involving a pattern of racketeering, failure to report a felony he had observed -- prostitution -- and credit card fraud. The Gold Club was also shut down as part of the deal. Kaplan lost his equity in the property and paid a $5 million fine -- $1.9 million of it in cash delivered to the FBI in New York and another $300,000 in restitution to fraud victims.

U.S. District Judge Willis Hunt said he declined to sentence Kaplan to the maximum sentence recommended by the government because his offense, while classified as racketeering, essentially amounted to credit card fraud, overcharging his other customers. Hunt said it was his opinion that Kaplan provided big name athletes with Gold Club dancers who performed sexual favors mainly to ingratiate himself with the players so he could be on a first-name basis with them. He said the government's attempt to show Kaplan's activities were underwritten by New York mobsters was "reasonably unsuccessful." The judge said his leniency also stemmed from Kaplan's cooperation in helping to clear the case after agreeing to a plea bargain. Kaplan also performed 400 hours of community service after he completed his jail term.

The government tried to link Kaplan to a New York Mafia family. But Michael "Mikey Scars" DiLeonardo, the only reputed high-ranking member of a crime family who was a defendant in the trial, was acquitted in late August of 2002 of extortion charges. A reputed capo in the Gambino organized crime family, he was found not guilty of conspiring to extort $100,000 from a New York strip club as a fee for mob protection. The jury also acquitted retired Atlanta police officer Reginald Burney, who faced racketeering and corruption charges in connection with the club. Kaplan was the only one of the 17 original defendants in the case who served time in prison. Thirteen others were sentenced to terms of probation.

Consumer Finance

Atlanta CFM is allegedly affiliated with subprime mortgage lenders and subprime consumer finance companies including, but not limited to, direct and indirect mortgage lenders and motor vehicle finance companies. Subprime loans are riskier loans in that they are made to borrowers unable to qualify under traditional, more stringent criteria due to a limited or blemished credit history. Subprime borrowers are generally defined as individuals with limited income or having FICO credit scores below 620 on a scale that ranges from 300 to 850. Subprime mortgage loans have a much higher rate of default than prime mortgage loans and are priced based on the risk assumed by the lender.

Adult Entertainment

Atlanta CFM allegedly provides compliance services to adult entertainment producers in order to comply with laws and regulations including, but not limited to, the Child Protection and Obscenity Enforcement Act of 1988 (Pub. L. 100–690, title VII, subtitle N (§7501 et seq.), Nov. 18, 1988, 102 Stat. 4485, 18 U.S.C. § 2251 et seq.), a United States Act of Congress, and part of the United States Code, which places stringent record-keeping requirements on the producers of actual, sexually explicit materials. The guidelines for enforcing these laws (colloquially known as 2257 Regulations (C.F.R. Part 75)), part of the United States Code of Federal Regulations, require producers of sexually explicit material to attain proof of age for every model they shoot, and keep those records on hand. Federal inspectors may — at any time — launch inspections of these records and prosecute any infraction.

See also

List of criminals by nickname

subprime meltdown

subprime lending

United States housing bubble

mortgage

American Freedom Mortgage, Inc.