Philly Mob Boss Trial: U.S. prosecutors have given up their case against the alleged boss of a Philadelphia crime family after he coasted through two gambling and racketeering trials. The Philly underboss was convicted on racketeering charges.

The jury in the Philly mob boss trial was deadlocked on Tuesday. The alleged Philly mob boss was being tried on a racketeering charge. The Philly mob boss jury acquitted him of all eight lesser counts in a gambling and loansharking case. Joseph "Uncle Joe" Ligambi, a reputed mob boss in Philadelphia will seek bail.

Philly mob underboss Joseph "Mousie" Massimino was convicted in racketeering charges along with two others. Reputed mob soldier Damion Canalichio and reputed mob associate Gary Battaglini were convicted on a charge of racketeering conspiracy and convicted on two counts of loansharking. The jury trying Ligambi's nephew George Borgesi was deadlocked. Anthony Staino Jr. , was convicted of two counts of loansharking. He is free on bail at least until Wednesday. Joseph "Scoops" Licata was acquitted of the racketeering charge.

The jury was deadlocked or acquitted the seven defendants on most of the approximately 60 counts. The trial heads back in court tomorrow. It is expected that Joseph Ligambi will seek bail. Ligambi spent two years in custody awaiting trial.

Attorneys for the accused Philly mob boss say the verdict closes the government's 13-year investigation into illegal gambling, video poker machines and loansharking in South Philadelphia. Edwin Jacobs Jr., the lead defense attorney called the prosecution "an enormous waste" of taxpayer money. There was no violence alleged in the trials except what the prosecution said were threats by debt collectors.

In a statement after the verdict, Jacobs said "We're not talking about terrorists. We're not talking about schoolchildren being shot up. We're talking about video machines that aren't hurting anybody. The only problem is they weren't controlled by the state."

Federal prosecutors say they will consider retrying the unresolved counts because this is an important case.

Assistant U.S. Attorney John Han said "We respect the jury's verdict. We will decide whether to go forward with the charges on which the jury was undecided."

The trial started in October and went on for three months. The jury heard testimony from mob informants, including an aging mobster who admitted killing several people before going into the federal witness protection program. Trial evidence included testimony from former La Cosa Nostra members, FBI agents who infiltrated a New York crime family and thousands of FBI wiretaps. Five people pleaded guilty before trial. Three more await trial.

When the trial started there hadn't been a mob killing in Philadelphia in nearly a decade. But hours after the feds rested their case in December, a convicted drug dealer who might have flipped was gunned down outside his house in South Philadelphia in broad daylight. Gambling figure Anthony Nicodemo was charged in the killing.

According to prosecutors Ligambi assumed control of the Philadelphia mob after Joseph "Joey" Merlino went to prison in 1999. Merlino got out last year and now lives in in Boca Raton, Fla.