In May 2001, the Federal Bureau of Investigation (FBI), in conjunction with the Brooklyn District Attorney's office, arrested Varacalli for insurance fraud, extortion, and other charges. Varacalli was the alleged ring leader of the biggest stolen car empire in New York City. New York Police Commissioner Bernard B. Kerik said that Varacalli made more than $2.5 million a year stealing cars to order and dispatching thieves to steal air bags from specific cars, based on orders from auto parts shops around the city. Some of those cars were "stolen" with the consent of their owners who wanted to get out of lease payments. Varacalli's crew was responsible for the theft of about 600 auto airbags. Federico Giovanelli, a reputed Genovese Capo and Vacarelli's alleged silent partner in the operation,