Louis (Big Lou) Vallario is one of a very select sub-group of the 21 family capos whose pictures adorned a huge collage of John Gotti's inner circle that was introduced into evidence at his 1992 racketeering and murder trial.

As he appeared for sentencing yesterday for a role in a conspiracy in which a building owner hired the mob to kick out the union, Vallario, 60, was one of only four capos from the Dapper Don's heyday who had spent no time in jail since Gotti was convicted and jailed for life.

When the day ended, Vallario's special status remained intact, as Brooklyn Federal Judge I. Leo Glasser gave him three years probation and a $500 fine.

It's not that Glasser didn't know who Vallario was, or that the judge has developed a soft spot for mobsters since he meted out life terms to Gotti and Frank Locascio.

"You are someone I have known about for years. Your name has been mentioned in my courtroom many times," Glasser told him. "I know," he added, "that if someone needs help with a union, you’re the someone I would know to contact.”

What happened, as lawyer James DiPietro pointed out in court papers, is that Vallario (left) was dragged into a labor bribery conspiracy by Genovese wiseguys who essentially asked and received directions from Big Lou after secretly agreeing NOT to tell Vallario what they were doing.

The scheme started when apartment building owner Abe Weider asked them to get rid of Local 32B/J as the bargaining agent for his workers. The Genoveses decided to utilize two guys from Brooklyn named

"Schiavone" and "Gags." But the Genovese wiseguys had no idea where to find them, so, on May 11, 2000 they decided to seek out Gambino soldier Jerome Brancato (right) to ask him if he knew.

During the conversation, Salvatore (Sammy Meatballs) Aparo warned undercover operative Michael (Cookie) Durso:

"I know the way this Jerry Brancato is, they're hungry. (They'll) grab right away...Don't make anybody know what we are doing....Don't let them know....They'll make the deal themselves..."

The next day, Aparo and Durso first approached Bonanno soldier John (Johnny Green) Faraci, who directed them to Brancato, who sent them to Vallario, who was playing cards in a social club.

In their discussion with Vallario, the only one of hundreds on which he is heard, they told Big Lou nothing about their scam, and he told them where they might find their men, or inquire further about them.

As little as he said to the Genoveses, he said even less to Glasser, deferring to his lawyer. DiPietro stressed that prosecutors, who knew more about Big Lou than the judge, had dropped the charges to a misdemeanor, virtually unheard of in wiseguy cases, because they had no evidence and that his client deserved to go home.

Glasser agreed, giving the same sentence to soldier Jerome Brancato, 70, for his similar role.

When Faraci's turn came, he stood up and told the Judge he was sorry for

being part of the labor bribery scheme.

"I apologize. I aggravated my family," said Faraci, 79. (left)

"I see you have been aggravating your family as far back as 1978," said Glasser, thumbing through Faraci's pre-sentence report.

Lawyer Vincent Romano tried to put in a few good words and said Faraci had served in World War II and had been at Normandy.

"So was I," said Glasser.
"He won a Bronze Star," said Romano.

"So did I," said Glasser, who gave Faraci four months home detention, a $1000 fine, and a lecture, one that also applied to Brancato: "At your age, maybe you should think about getting out of this life and start worrying about who’s going to be knocking on your door putting handcuffs on you."

After making an overture to resolve his money laundering case, Gambino gangster Joseph Watts (left) has decided to roll the dice a second time and risk a conviction that could send him away for the rest of his life.

Watts, who was found guilty of tax fraud last year by a Brooklyn Federal Court jury that hung on the much more serious charges, has broken off negotiations, and jury selection is set for later this month.  

If Watts, 60, continues in his resolve – he faces 20 years if convicted and less than 10 if he changes his mind, sources say – Gang Land expects turncoat mobster Anthony Capo to make his debut as a prosecution witness.

Capo, a DeCavacante soldier who was primed a year ago but held out by  prosecutors who seemed to have overestimated their case, will back up testimony by Gambino defector Dominick (Fat Dom) Borghese that Watts was a mob loanshark 20 years ago.

The prosecution's case has two prongs: a Borghese assertion that he picked up $30,000 a week in interest payments from dozens of Watts' loanshark customers from 1986 to 1994 and a charge by Borghese and other evidence that Watts laundered the money in a luxurious beach house in Sarasota, Fla.

A reputed member of the hit team that killed Paul Castellano in late 1985, Watts was part of Gotti's inner circle and had more clout and influence than many soldiers and capos, according to the feds.

The retrial will have a different judge, Edward Korman, who scheduled jury selection for May 28, with opening statements to follow next month.

Prosecutors Daniel Dorsky and Andrew Genser and defense lawyers Gerald Shargel and Andrew Weinstein declined to discuss the upcoming retrial or the stalled talks to work out a plea deal.