In 1984, LoFaro was arrested in Upstate New York trying to sell a kilogram of heroin to an undercover agent in an FBI and Drug Enforcement Administration operation.
[1] According to Time magazine, investigators outfitted LoFaro "with a tiny microphone taped to his chest and a miniature cassette recorder, no bigger than two packs of gum, that fitted into the small of his back without producing a bulge.
Equipped with a magnetic switch on a cigarette lighter to activate the recorder, Lofaro coolly discussed Gambino family affairs with the unsuspecting Gotti brothers.
LoFaro also produced evidence against Genovese crime family associates Attilio Bitondo and Eugene Hanley, who were leaders in the New York City Carpenters' Union.
LoFaro provided information to the New York State Organized Crime Task Force that led to electronic surveillance on the offices of Carpenters' Union Locals 608 and 257 in Manhattan.