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There is a huge development in the sweeping federal Philadelphia mob indictment that took down the hierarchy of the local South Philly organized crime family including Mafia  boss, Joe Ligambi

One of the key defendants in the case, “Bent Finger” Lou Monacello, has been released from federal prison just weeks after federal prosecutors demanded he be kept behind bars until his racketeering trial next year.

Fox 29’s Dave Schratwieser says it looks like Monacello struck a deal with federal prosecutors.

Defense attorneys seem convinced that Monacello must be cooperating against their clients, even though the feds and Monacello’s attorney are not commenting.

Monacello has been very close to alleged Philadelphia mob boss Joe Ligambi who is facing 10 to 20 years on this new federal racketeering indictment.

He’s also close to jailed mob captain George Borgesi, Ligambi’s nephew.

The allegations are that Monacello helped run Borgesi’s gambling enterprise while he was in prison and that he can bury Ligambi and Borgesi with his testimony, if he is cooperating.

All court documents are sealed but the federal bureau of prisons now lists Monacello as “released” from the federal detention center.

Schratwieser spoke to one of the defense attorneys in the case this afternoon..

“he’s only facing 50 months, but i guess his anger towards some of the defendants convinced him that he should cooperate,” said Joseph Santaguida.

Now the fbi, the U.S. Attorney and Monacello’s lawyer all refused to comment today.

Sources say Monacello was released with an electronic monitoring device. If he is indeed cooperating mob watchers say he could be the first of several defendants that may be approached about assisting the government in their case against Ligambi and the mob.