On November 19, 1970, Aloi was indicted on stock fraud charges involving the illegal takeover of an investment firm in
Miami, Florida. However, on December 23, 1971, Aloi was acquitted on all charges. On June 26, 1973, Aloi was convicted of
perjury in state court. Prosecutors had charged that Aloi lied to a
grand jury when he claimed to have not visited a Colombo family
safe house in
Nyack, New York before the murder of Joe Gallo. He was later sentenced to two and one-third to seven years in state prison. While Aloi was appealing his state court perjury conviction he was also serving a prison sentence on federal charges for stock fraud involving an automobile leasing company. After being convicted on those federal charges later in 1973 Aloi was sentenced to nine years in
Allenwood Federal Penitentiary in 1974. Now that Aloi was also in prison, Persico demoted him from acting boss back to
capo. After numerous state court appeals and
habeas corpus proceedings, a federal district court set aside Aloi's perjury conviction on a writ of habeas corpus. The Second Circuit Court of Appeals first affirmed the District Court's decision in 1979, then reversed it in 1980, after the Supreme Court remanded Aloi's case to it for reconideration. While Aloi's challenge to his state court conviction was proceeding, his federal sentence for fraud was commuted in 1979 to time served. returning to his crew in the Brooklyn faction of the Colombo crime family. ==Later years==