Connolly, who was arrested in his Lynnfield, Mass., home, pleaded innocent in federal court to the five- count indictment and was set free on $200,000 bail.
Connolly and the two, one time informants are named in a five-count indictment accusing them of racketeering, racketeering conspiracy, obstruction of justice and conspiracy to obstruct justice.
Connolly and the two informants also are collectively accused of conspiracy and extortion in the illegal takeover of a South Boston liquor store.