Indicted Record Promoter Allegedly Threatens Witness

A former record promoter indicted on racketeering, fraud and other charges for making “payola” payments to radio station programmers has allegedly threatened a former employee expected to testify against him, a federal prosecutor said Friday.

Justice Department attorney Drew Pitt also told a federal magistrate that authorities believe that Joseph Isgro, 42, has Mafia connections that might be employed to make good on the alleged threats.

Pitt said Isgro had financial ties as recently as 1986 with East Coast mobster Joe Arnome, who Isgro was known to refer to as “Uncle Joe.” Arnome has been convicted of racketeering, Pitt said.

The prosecutor made the allegations at a bail hearing in which Isgro’s bond was lowered to $300,000 from $500,000.

After the hearing, Pitt said Isgro in early 1987 had “threatened (to) harm” David Michael Smith, a former Isgro employee who is expected to testify against him. Pitt said the threat had been made after Isgro arranged for Smith to go to Britain. One of the charges in the indictment--obstructing justice--involves allegations that Isgro persuaded Smith to flee the country after Smith was subpoenaed to testify before the grand jury investigating the case.

Pitt said he had raised the issue of the alleged threat so that Isgro would be restrained from talking to any witnesses except through his lawyer. Pitt said he was pleased that this had been made a condition of Isgro’s bail being lowered.

Isgro’s attorney, Don Re, has called the indictment “unfounded and unjustified.”