Three owners of the planned Everett, Mass., casino site were indicted by a federal grand jury Thursday for allegedly defrauding Steve Wynn, hiding from him the fact that a convicted felon and known Mafia associate was one of the owners, The Boston Globe reports.

Update: Somerville Mayor Joe Curtatone issued the following statement Friday morning:

Once again, the state’s casino approval process and the Gaming Commission have failed. In recent months, several issues surrounding the site of the proposed Wynn casino have been brought to the Gaming Commission’s attention, including one of the landowners originally refusing to sign a pledge that no secret owners would profit from the land’s sale to the applicant and the acceptance of the applicant’s reduction of the purchase price from $75 million to $35 million. The Commission sold the public short. As their own investigators concluded last December, ‘the conduct of the sellers in this transaction during the Investigations and Enforcement Bureau’s suitability investigation gave rise to serious concerns as to transactional transparency, good faith disclosure and document misrepresentation and falsification.’ Nevertheless the Commission failed to outright reject the Everett property as a site for gaming. Sadly this was not surprising. We have seen throughout this entire process that it was designed, from start to finish, to only favor the gambling industry.

In September, Massachusetts gambling commissioners backed Wynn’s proposal to build a $1.6 billion casino along the banks of the Mystic River in Everett. The decision scrapped a similar Mohegan Sun casino proposal for Suffolk Downs, forcing the racetrack to immediately begin shutting down its operations.

It’s been just over two weeks since the lone Greater Boston casino license was awarded to Everett. Now, federal prosecutors allege the owners of the planned casino site concealed from Wynn that convicted felon and known mobster Charles Lightbody was one of the owners of the planned casino site, the Globe reports.

The federal grand jury indicted Lightbody, along with fellow land owners Anthony Gattineri and Dustin DeNunzio on charges of wire fraud and conspiracy to commit wire fraud.

Records list DeNunzio and Gattineri as owners of the planned Everett casino site. Lightbody’s name, however, doesn’t crop up on any of the paperwork, the Globe reports.

The trio faces up to 20 years in prison if convicted on federal charges. They also face five years in prison on allegations from a state grand jury that they lied to the state gambling commission.

The Globe notes no public officials nor the fourth owner of the Everett site, Paul Lohnes, were indicted.

Lightbody and one other owner are due in federal court Thursday afternoon.