Feds bust mob racket
NWI Times
Dec 19, 1990
http://www.nwitimes.com/uncategorized/feds-bust-mob-racket/article_3842058f-1279-53f8-bad7-5c523c0d9afe.html
HAMMOND - An Orland Park man known to authorities as the organized crime boss who controlled gambling in Northwest Indiana was arrested by Federal authorities Tuesday in a sweep hailed as the "largest organized crime case ever" in the area.
A 29-count indictment against Dominick Palermo and 14 others was returned Friday by a federal grand jury and unsealed Tuesday. Arrests were carried out early Tuesday, said James G. Richmond, U.S. attorney for the district.
The indictment comes against a backdrop of major efforts by the Department of Justice to dismantle organized crime families in Boston, Pittsburgh, New York and Chicago.
Federal and state officials said Tuesday the indictments, which stem from an eight-year investigation, could represent a major blow to organized crime.
The investigation was conducted jointly by the FBI, Indiana State Police and District Attorney's office for the Northern District.
The indictment charges 72-year-old Palermo and his organization with extorting protection money, or a "street tax," from other illegal gambling businesses. The scheme provided a major source of income for the crime family, said Wayne Alford, FBI special agent-in-charge in Indianapolis.
Palermo, a field representative for the Laborers International Union Local 5 in Chicago Heights, is a member of the "Outfit, " a crime syndicate that has operated in Northwest Indiana since the 1900s, Alford said.
The indictment also alleges that Palermo was involved in an illegal sports betting operation, which included a football parlay card game and a Greek dice game know as "barbut," each one of them involving thousands of dollars in illegal profits.
The sports betting and "barbut" games operated from 1983 through 1987. Steve Sfouris, 55, of Munster, was indicted in connection with the games, Richmond said.
Also named in the indictment were Nicholas Albert Guzzino, 49, of Chicago Heights; Bernard J. Morgano, 54, of Valparaiso; Anthony Leone, 51, of Valparaiso; Sam M. Glorioso, 48, of Gary; Peter Petros, 56, of Chicago; Sam Nuzzo Jr., 45, of Merrillville; Sam Nuzzo Sr., 69, of Merrillville; Arthur A. Nuzzo, 33, of Merrillville; Sandra T. Mynes, 43, of Merrillville; Jennifer Kaufman, 37, of Merrillville; and Anthony J. Ottomanelli, 60, of Portage; Ned M. Pujo, 51, of Portage; and Yolande Martha Pujo, 55, of Portage.
According to the indictment, businesses and their owners were threatened if they refused to pay. One business allegedly paid $30,000 to the Palermo organization, said Richmond.
The indictment alleges that the crime family extorted a portion of the business profits made by Reginald P. Kinked, owner of Variety Amusement Co., of East Chicago; Timothy Janowsky, owner of Geno's Vending, of Gary; Edward Strawmier; Donald Pytel; John Mantis; Louie Gerodimos, a Northwest Indiana restaurateur; Antanasios Gerodimos;Franklin Burton; and Jeffrey Dunk.
In addition, at least one of the defendants attempted to collect a "unlawful" gambling debt from Robert Graczyk.
Thousands of dollars collected from the business owners were transported each week from Lake and LaPorte county businesses to the south suburbs, where the crime family is based, Richmond said.
The investigation involved about 300 days of FBI electronic surveillance and between 50 and 100 agents, Richmond said.
The continued cooperation between state and federal agencies will help the government diminish the influence of the Outfit in Indiana, said FBI's Alford.
In a statement issued from Washington, U.S. Attorney General Dick Thornburgh praised investigators and prosecutors for their tenacity.
"The payoff for the Palermo bookmaking operation comes in the form of today's indictment." Thornburgh said. "For a true odds maker, 29 counts of racketeering and extortion should ensure against Palermo's swift return to the business of illegal sports betting in Chicago and Northern Indiana."
All of the defendants made an initial court appearance Tuesday before U.S. Magistrate Andrew P. Rodovich, except for Sfouris and Petros, who are both fugitives, and Leone, who will be brought before Rodovich for an initial appearance within the next 30 days.
Palermo and Guzzino were ordered held at the Metropolitan Correction Center in Chicago. The other defendants were allowed to post bond, and all but Glorioso had done so by 5 p.m.
Sfouris has been a fugitive as a result of a warrant issued for his arrest by Judge James T. Moody for his failure to appear for a court appearance in June 1990.
The case will be prosecuted by assistant U.S. attorney Michael A. Thill.
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