03281991 - News Article - Competency hearing set for alleged mob figure

Competency hearing set for alleged mob figure
NWI Times
Mar 28, 1991
http://www.nwitimes.com/uncategorized/competency-hearing-set-for-alleged-mob-figure/article_44f442c9-28ac-5ebb-98a6-2a5060e93ce5.html
HAMMOND - A hearing will be held Monday to determine if one of the defendants charged with extorting money for a purported Chicago crime family should be examined for his competency to stand trial.

A psychiatric examination for Peter A. "Cadillac Pete" Petros, 56, of LaPorte, has been requested by his court-appointed lawyer, John McGrath, who argued in a motion that Petros has suffered from mental illness and may have been suffering from it at the time of the alleged crimes.

U.S. District Court Judge James T. Moody ordered the hearing to determine if the examination is warranted.

Petros was one of 15 people named in a 30-count indictment hailed as the largest organized crime case ever handled by the U.S. District Court for the Northern District of Indiana. Alleged "Outfit" South Side mob boss Dominick Palermo, 72, of Orland Park and his aide Nicholas Albert Guzzino, 49, of Chicago Heights also were indicted.

Petros, charged on one count of racketeering, one count of conspiracy and four counts of extortion, has been held at the Metropolitan Correctional Center in Chicago since December, when he surrendered to federal authorities.

He allegedly committed the crimes in Lake and LaPorte counties, collecting protection money from video game operators Tim Janowsky and Reginald Kinkade between December 1984 and November 1986. Kinkade, convicted of gambling and conspiracy earlier this year, owned Variety Amusement in East Chicago. Janowsky, an FBI informant, was the owner of Geno's Vending in Merrillville.

Six of the defendants in the case have requested a separate trial from eight other defendants who have been charged under the Racketeer Influenced Corrupt Organizations Act and the bulk of the charges. The eight are Palermo; Guzzino; Petros; Bernard J. Morgano, 54, of Valparaiso; Steve Sfouris, 55, a fugitive; Anthony Leone, 51, of Valparaiso; Sam M. Glorioso, 48, of Gary; and Sam Nuzzo Jr., 45, of Merrillville.

The six who face fewer charges contend they cannot get a fair trial if the same jury also hears evidence concerning the activities of the alleged bosses and lieutenants of the organized crime family.

The six who want separate trials are Ned M. Pujo, 51 and his wife, Yolande Martha Pujo, 55, of Portage; Sam Nuzzo Sr., 69, and his son Arthur A. Nuzzo, 33, and daughters Sandra T. Mynes, 43, and Jennifer Kaufman, 37, all of Merrillville.

The indictments, which stem from an eight-year investigation, also named Anthony J. Ottomanelli, 60, of Portage.

03191991 - News Article - Judge to rule on attorney's status - Ex-prosecutor hired in racketeering case

Judge to rule on attorney's status 
Ex-prosecutor hired in racketeering case
Post-Tribune (IN)
March 19, 1991
http://infoweb.newsbank.com.proxy.portagelibrary.info/resources/doc/nb/news/10852C34C97949FE?p=AWNB
U.S. District Judge James T. Moody is expected to rule this week whether a former government prosecutor will be allowed to represent two alleged members of the organized crime syndicate under indictment on racketeering and extortion charges.

Moody heard testimony Friday on a motion by Assistant U.S. Attorney Michael A. Thill that the Chicago law firm headed by Patrick Tuite not be allowed to represent the two alleged racketeers.

The government contends that Kevin Milner, an assistant U.S. attorney until he joined Tuite's firm in April 1990, signed a government request in June 1987 for an extension of the pen register of the telephone belonging to Bernard "Snooky" Morgano. A pen register records the origin and duration of incoming calls for a telephone number.

Morgano is one of 15 alleged syndicate members and gamblers named in the indictment.

Milner is representing Dominick "Tootsie" Palermo, 72, of Orland Park, Ill., and Nicholas "Nicky" Guzzino, 49, of Chicago Heights, Ill. Palermo is the reputed head of the crime syndicate's operations in Chicago's south suburbs and Northwest Indiana. Guzzino is alleged to be Palermo's top lieutenant.

Milner acknowledged that it is his signature on the request for the extension of the pen register, but said he wasn't involved in the investigation and doesn't recall signing the request.

Milner said he probably signed the request because he was the only assistant U.S. attorney around the office at the time a signature was needed.

James Cziperle, an FBI agent, and John Evon, who at the time was a member of the Chicago Strike Force on Organized Crime, both testified that Milner was not a part of the investigation.

Moody gave the government until Monday to make a written response to Milner's motion to quash the government's attempt to have him removed from the case. The indictment last December culminated an eight-year investigation into the crime syndicate and the "street tax" it extorted from longtime gamblers in Lake and Porter counties.

Palermo, Guzzino and Peter "Cadillac Pete" Petros, 56, of Cicero, Ill., formerly of LaPorte, are being held without bond.

The other defendants are Anthony Leone, 49, of Valparaiso; Sam "Frog" Glorioso, 48, of Gary; Steve Sfouris, 55, of Munster; Anthony "Potatoes" Ottomanelli, 60, of Portage; Ned Pujo, 51, and Yolande Pujo, 55, of Portage; and Sam Nuzzo Sr., 69, of Merrillville, and his four children, Sam Nuzzo Jr., 45, Arthur Nuzzo, 33, Sandra Mynes, 43, and Jennifer Kaufman, 37, all of Merrillville. Sfouris has fled to his native Greece.

03161991 - News Article - Judge to rule on defense attorney's status - Former Government prosecutor wants to defend alleged crime syndicate members

Judge to rule on defense attorney's status 
Former Government prosecutor wants to defend alleged crime syndicate members
Post-Tribune (IN)
March 16, 1991
http://infoweb.newsbank.com.proxy.portagelibrary.info/resources/doc/nb/news/10852C2ED37B0D5C?p=AWNB
U.S. District Judge James T. Moody is expected to rule next week whether a former government prosecutor will be allowed to represent two alleged members of the organized crime syndicate under indictment on racketeering and extortion charges.

Moody heard testimony Friday on a motion by Assistant U.S. Attorney Michael A. Thill that the Chicago law firm headed by Patrick Tuite not be allowed to represent the two alleged racketeers.

The government contends that Kevin Milner, an assistant U.S. attorney until he joined Tuite's firm in April 1990, signed a government request in June 1987 for an extension of the pen register of the telephone belonging to Bernard "Snooky" Morgano. A pen register records the origin and duration of incoming calls for a telephone number.

Morgano is one of 15 alleged syndicate members and gamblers named in the indictment.

Milner is representing Dominick "Tootsie" Palermo, 72, of Orland Park, Ill., and Nicholas "Nicky" Guzzino, 49, of Chicago Heights, Ill. Palermo is the reputed head of the crime syndicate's operations in Chicago's south suburbs and Northwest Indiana. Guzzino is Palermo's top lieutenant.

Milner acknowledged that it is his signature on the request for the extension of the pen register, but said he wasn't involved in the investigation and doesn't recall signing the request.

Milner said he probably signed the request because he was the only assistant U.S. attorney around the office at the time a signature was needed.

James Cziperle, an FBI agent, and John Evon, who at the time was a member of the Chicago Strike Force on Organized Crime, both testified that Milner was not a part of the investigation.

Moody gave the government until Monday to make a written response to Milner's motion to quash the government's attempt to have him removed from the case.

The indictment last December culminated an eight-year investigation into the crime syndicate and the "street tax" it extorted from longtime gamblers in Lake and Porter counties.

Palermo, Guzzino and Peter "Cadillac Pete" Petros, 56, of Cicero, Ill., formerly of LaPorte, are being held without bond.

The other defendants are Anthony Leone, 49, of Valparaiso; Sam "Frog" Glorioso, 48, of Gary; Steve Sfouris, 55, of Munster; Anthony "Potatoes" Ottomanelli, 60, of Portage; Ned Pujo, 51, and Yolande Pujo, 55, of Portage, and Sam Nuzzo Sr., 69, of Merrillville, and his four children, Sam Nuzzo Jr., 45, Arthur Nuzzo, 33, Sandra Mynes, 43, and Jennifer Kaufman, 37, all of Merrillville.

03161991 - News Article - Defense lawyer's conflict of interest decision

Defense lawyer's conflict of interest decision
NWI Times
Mar 16, 1991
http://www.nwitimes.com/uncategorized/defense-lawyer-s-conflict-of-interest-decision/article_45bdcc70-c993-5a1f-adef-83fa30ca8f37.html
HAMMOND - A U.S. District Court Judge has postponed his decision on whether a defense lawyer's representation of two key members of an alleged Chicago South Side crime family is a conflict of interest.

Judge James Moody has given government prosecutors until noon Tuesday to file a response to Kevin Milner and the Chicago law offices of Patrick Tuite Ltd.'s argument that they should be able to defend alleged mob boss Dominick "Tootsie" Palermo, 73, of Orland Park, and aide Nicholas "Nicky" Guizzino, 54, of Chicago Heights.

Government prosecutors asked Moody in a motion last week to disqualify Milner, charging that while he was a prosecutor, he participated in the investigation of his clients.

Prosecutors uncovered an application signed by Milner asking for the right to monitor calls from a phone owned by Bernard "Snooky" Morgano, an aide to Palermo who was named in the same indictment unsealed in December.

The government claims Milner's participation in the investigation is a conflict of interest and raises questions about impropriety. Defense lawyers Friday presented their response to prosecutors' charges.

Milner said in an affidavit filed Thursday that he does not remember signing the application in 1987 and had no knowledge of the investigation while working for the government. He also defended Palermo's and Guizzino's constitutional rights to seek the legal representation of their choice.

The Tuite law firm has represented the two men since 1987, when they learned of the government's investigation against them, according to an affidavit signed by Tuite. Milner, who worked for the U.S. attorney's office for about four years, left his public post to take a position with the law firm last year.

03121991 - News Article - Alleged mob boss' lawyer asked to withdraw from case

Alleged mob boss' lawyer asked to withdraw from case
NWI Times
Mar 12, 1991
http://www.nwitimes.com/uncategorized/alleged-mob-boss-lawyer-asked-to-withdraw-from-case/article_486feb24-3362-5f47-8483-5227a7966fd9.html
HAMMOND - A lawyer now defending two key members of an alleged Chicago South Side crime family helped the government in its eight-year investigation of the syndicate, according to court documents.

Kevin E. Milner, a former assistant United States attorney for the Northern District of Indiana, is defending two of the men he helped investigate - alleged mob boss Dominick "Tootsie" Palermo, of Orland Park, and aide Nicholas "Nicky" Guzzino, of Chicago Heights.

The government will ask at a hearing Friday that Milner's law firm not be allowed to represent Palermo and Guzzino on grounds of a conflict of interest.

Milner and Patrick A. Tuite, of the Chicago law firm bearing Tuite's name, have represented the two men since their indictment last December.

Milner, who resigned from his government post in April 1990 to enter private practice with the Chicago-based Tuite law firm, could not be reached for comment Monday.

Palermo, 73, and Guzzino, 54, are being held at the Metropolitan Correctional Center in Chicago until their trial July 22. They are among 15 people accused of running for the Chicago "Outfit" crime family a sports betting and high-stakes gambling network in Lake County. They are also charged with extorting a so-called street tax from area gambling operations.

Court records show that Milner, while working for the U.S. attorney's office, sought in June 1987 an extension of a pen register of the phone belonging to Bernard "Snooky" Morgano, an aide to Palermo who was also named in the indictment returned by a federal grand jury. Milner stated in his application for the register that the information was relevant to the ongoing investigation.

A pen register logs from a certain telephone number the origin and duration of outgoing calls and the duration, though not the origin, of incoming calls.

The results from Morgano's pen register were used to obtain a wiretap to record conversations from Morgano's telephone, court records show.

Many of the conversations recorded during the wiretap will be used as evidence during the trial, which is expected to take between four and eight weeks, according to a motion filed by the government.

Prosecuting attorney Michael A. Thill learned of Milner's involvement Feb. 22 when FBI special agent James Cziperle told Thill about the pen register application signed by Milner.

In Thill's motion to disqualify the law firm, he indicated that after discussing the matter with Milner, an opinion regarding the potential conflict was sought from the Public Integrity Division of the Department of Justice.

"The department further advised that the law firm should withdraw from the defense of this case," Thill states in his motion.

Other defendants in the case are: Peter "Cadillac Pete" Petros, of LaPorte; Anthony Leone, of Valparaiso; Sam "Frog" Glorioso, of Gary; Sam Nuzzo Sr. and his sons, Sam Nuzzo Jr. and Arthur A. Nuzzo, and daughters Jennifer Kaufman and Sandra T. Mynes, all of Merrillville; husband and wife, Ned M. and Yolande Pujo, of Portage; and Steve Sfouris, formerly of Munster and now believed a fugitive living in his native Greece.