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Announcing federal indictments of seven members, federal and city authorities Tuesday claimed they had smashed the Green Dragons, a Chinese-Vietnamese street gang that allegedly terrorized Asian merchants in Queens with a classic mob-style extortion racket.

Officials said the gang is still under investigation for numerous crimes including murder, rape, armed robbery and kidnapping. Indicted on charges of conspiring to attack a rival gang, were Chen I. Chung, 22, whom police called the leader of the Green Dragons, and six others men aged 20 to 24, all arrested Nov. 19 when they left a "safe house" in Queens to battle the rival White Tigers, U.S. Attorney Andrew J. Maloney said.

Authorities learned last month the Dragons planned a violent showdown with the White Tigers, at a record store in the Elmhurst section of Queens, because the Tigers had been extorting money from Asian merchants on Green Dragon "turf," police said.

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