James Eppolito met with Paul Castellano and accused DeMeo and Gaggi of drug dealing, which carried the penalty of death. Castellano, to whom Gaggi was a close ally, sided against Eppolito in the situation and gave Gaggi permission to do what he pleased. He and DeMeo shot the two to death in Eppolito Jr.'s car en route to the Gemini Lounge on October 1, 1979. A witness driving by right as the shots were fired within the parked car managed to alert a nearby police officer, who arrested Gaggi after a shootout between the two that left Gaggi with a bullet wound in his neck. Since DeMeo had split up with Gaggi as they left the scene, he was not arrested or identified by the witness. Gaggi would be charged with murder and the attempted murder of a police officer but through jury tampering was convicted only of assault and given a 5 to 15-year sentence in Federal Prison. DeMeo would murder the witness shortly after Gaggi's sentencing in March 1980.