FBI Raids Niagara Falls Offices of Gross Plumbing

Niagara Falls Mayor Paul Dyster tells 2 On Your Side that the FBI showed up at city hall Friday morning armed with a search warrant.

The warrant specifically names the offices of Building Inspections Acting Director Guy Bax and Chief Plumbing Inspector George Amendola. The warrant says they are looking for records related to any items of value received by the two men.

According to the Mayor no one has been arrested.

Dyster announced at an afternoon news conference that although no one has been charged he has taken action against Bax and two other members of the city's inspection department.

"Due to the seriousness nature of what's contained in the affidavit upon which the search warrants were executed, I've rescinded the appointment of Guy Bax as acting Building Commissioner effective immediately, and have placed Guy Bax, electrical inspector Peter Butry, and plumbing inspector George Ammendola on paid administrative leave," Dyster said.

The affidavit Dyster referred to was obtained by 2 On Your Side and is quite voluminous, containing 116 pages.

It reveals the investigation began in April after an employee of David Gross Contracting, where a search warrant was also executed Friday, approached the FBI.

The informant later agreed to wear a wire to substantiate their claim that numerous white collar crimes, including insurance fraud, tax evasion, and bid rigging, were being committed by David Gross's father, John Gross, who the informant said was secretly running the business.

John Gross had previously served federal prison time for racketeering related charges and was released from custody in 2000.

The affidavit further infers that Bax used his position at City Hall to steer work to Gross's company, ...and arrange for the work to pass inspection in exchange for currency or other goods, such as a remodeling job at his home.

Also; that Gross influenced two unnamed City Councilmembers, to ensure Bax would keep his job after Bax had clashed with Dyster and City Administrator Donna Owens.

The affidavit includes transcripts of e-mails which indicate a close relationship between Bax and Gross, who Bax refers to as "Godfather" and who he professes his love and respect for,...sometimes through poetry.

In an Easter greeting which an FBI agent, in a sworn statement, claims was sent by Bax to Gross, it purports to be from "Godfather Rabbit" from "little Guy" rabbit.

In it Bax writes:

"Little guy rabbit told Godfather rabbit he wanted to remodel his little bunny cave".. poof it was done!

The FBI interprets that to mean Gross did work at Bax's home for free.

In the same e-mail Bax refers to running afoul of "mean old King Rabbit of the City of Big Water", which the FBI agent says refers to Mayor Dyster, and "The chocolate rabbit with the big teeth and hollow head," in reference, according to the FBI -- to City Administrator Owens who is African American.

Stay tuned to 2 On Your Side and wgrz.com for more on this story as it develops.