04121991 - News Article - Alleged mob figures must stay in jail until trial

Alleged mob figures must stay in jail until trial
NWI Times
Apr 12, 1991
http://www.nwitimes.com/uncategorized/alleged-mob-figures-must-stay-in-jail-until-trial/article_88fd293c-09d0-5e17-860f-c90c528b88cf.html
HAMMOND - An alleged Chicago South Side mob boss and his aide will remain in prison until their trial July 22, a federal appeals court has ruled.

The request for the release of Dominick "Tootsie" Palermo and Nicholas "Nicky" Guzzino pending their trial was been denied by 7th Circuit Court of Appeals.

The court agreed with a U.S. District Court decision that the two posed a risk to the community and should not be released on bond.

The two are among the 15 named in a 30-count indictment that followed an eight-year federal probe into sports betting and high-stakes gambling operations in Lake County. The indictment , released in December, was hailed as the largest organized crime case ever handled by the Northern District of Indiana.

The men are accused of running for the Chicago "Outfit," a sports betting and high-stakes gambling network in Lake County, and extorting a so-called street tax from area gambling operations.

Palermo, 72, of Orland Park and Guzzino, 49, of Chicago Heights were ordered Dec. 21 held at the Metropolitan Correction Center in Chicago without bail, along with Peter "Cadillac Pete" Petros, 49, of Chicago Heights.

The district court has not ruled yet on another pending motion that would allow Palermo and Guzzino to be released to the custody of their lawyers, Kevin Milner and Patrick Tuite, while they prepare for their defense.

Their lawyers argue that because of the noisy and restrictive conditions of the correctional center, Palermo and Guzzino cannot adequately go through the numerous documents and prepare for the trial.

U.S. Attorney Michael Thill is continuing to object to Palermo's and Guzzino's release to visit their lawyers' law office in Chicago, arguing that they are a risk to the community.

Milner said Thursday he doesn't think his motion for a temporary release will be affected either way by the 7th Circuit Court decision. He said he felt they had presented sufficient conditions under which Palermo and Guzzino could be released on bond.

Palermo, a field representative for the Laborers International Union Local 5 in Chicago Heights, is allegedly the South Side boss of the "Outfit." His position in the organization reportedly was elevated with the arrest and conviction last year of the Chicago Heights mob boss Albert "Caesar" Tocco, who is serving a 200-year prison term.

Palermo was mentioned in a court memo during Tocco's trial as one of three men who met Tocco the night of the murders in 1986 of the mob's alleged Las Vegas overseer, Anthony Spilotro, 48, and his brother, Michael, 41, who were buried in a cornfield in Newton County. Guzzino was one of the men identified in the memo who dug the grave for the brothers.

All of the other defendants in the case have been released on bond.

They are Bernard "Snooky" Morgano, 54, of Valparaiso; Anthony Leone, 51, of Valparaiso; Sam M. Glorioso, 48, of Gary; Sam Nuzzo Sr., 69, and his four children, Sam Nuzzo Jr., 45, Arthur A. Nuzzo, 33, Sandra T. Mynes, 43, and Jennifer Kaufman, 37, all of Merrillville; Anthony J. Ottomanelli, 60, of Portage; and husband and wife, Ned M. Pujo, 51, and Yolande Martha Pujo, 55, both of Portage.

Steve Sfouris, 55, formerly of Munster, is still a fugitive and believed to have escaped to his native Greece.

04121991 - News Article - Reputed syndicate members ordered to remain in custody

Reputed syndicate members ordered to remain in custody
Post-Tribune (IN)
April 12, 1991
http://infoweb.newsbank.com.proxy.portagelibrary.info/resources/doc/nb/news/10852C587749B90C?p=AWNB
Reputed syndicate members Dominick Palermo and Nicholas Guzzino will remain in custody until their trial July 22.

The U.S. 7th Circuit Court of Appeals on Thursday rejected the appeal of a lower court decision that the two not be granted bond.

Palermo, 72, of Orland Park, Ill., and Guzzino, 49, of Chicago Heights, Ill., are two of 15 alleged syndicate members and gamblers indicted by a federal grand jury in December on racketeering and extortion charges.

Assistant U.S. Attorney Michael A. Thill argued for the government against the release of the two alleged racketeers.

Palermo is the reputed head of the crime syndicate's gambling and vice operations in Northwest Indiana and South Chicago. Guzzino is is the alleged top lieutenant.

Peter "Cadillac Pete" Petros, formerly of LaPorte and now living in Illinois, also is being held pending trial.

Most of the 15 indicted are Lake and Porter County residents.

04061991 - News Article - Prosecution's motion denied - Ex-Assistant U.S. Attorney can continue in 'street tax' case

Prosecution's motion denied 
Ex-Assistant U.S. Attorney can continue in 'street tax' case
Post-Tribune (IN)
April 6, 1991
U.S. District Judge James T. Moody has rejected a government plea that a former deputy federal prosecutor be prohibited from defending two alleged members of the crime syndicate.

"There is no compelling legal or professional reason to disqualify attorney (Kevin) Milner from this action," Moody wrote in his Thursday motion.

Kevin Milner, an assistant U.S. attorney until April 1990, is representing Dominick "Tootsie" Palermo, 72, of Orland Park, Ill., and Nicholas "Nicky" Guzzino, 49, of Chicago Heights, Ill. Milner is a member of the Patrick Tuite law firm in Chicago.

Palermo is the alleged head of the crime syndicate's vice operations in Northwest Indiana and the South Side of Chicago. Guzzino is his alleged top lieutenant.

"We are very pleased with the decision," Milner said. "We are very anxious to get down to more important things like the trial of the case."

The government argued that Milner should be disqualified because he signed a request for the renewal of a pen register on the telephone of Bernard ''Snooky" Morgano, 54, of Valparaiso, the reputed street boss for Lake County gambling operations. Morgano is one of 15 named in the December 1990 indictment.

A pen register records the telephone numbers and the duration of incoming and outgoing calls. It doesn't record conversations.

Milner acknowledged signing the request but said he wasn't involved in the investigation.

Moody agreed, saying, "The court finds that attorney Milner's participation in applying for a renewed pen register was at most perfunctory involvement."

On the issue of ethical standards, Moody said, "Given the simplicity of determining which ethical rules apply, the court is at something of a loss to understand why the parties, and the government in particular, spill so much ink in discussing the irrelevant history of the A.B.A. Model Code."

James Mesterharm, a spokesman for the U.S. attorney's office, said U.S. Attorney John F. Hoehner was withholding comment until he had a chance to read the judge's ruling.

The indictment was the culmination of an eight-year investigation into the crime syndicate and the "street tax" it allegedly extorted from longtime gamblers in Lake and Porter counties.

Several of those under indictment have longtime ties to various types of gambling in Lake County.

Palermo, Guzzino and Peter "Cadillac Pete" Petros, 56, of Cicero, Ill., were denied bond. Petros, who formerly lived in LaPorte, is seeking to be declared mentally incompetent to stand trial.

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 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 Greece.

04051991 - News Article - Judge allows lawyer to continue defense of Palermo

Judge allows lawyer to continue defense of Palermo
NWI Times
Apr 5, 1991
http://www.nwitimes.com/uncategorized/judge-allows-lawyer-to-continue-defense-of-palermo/article_13c4e5c0-7bae-5b99-9d89-20a01a1b3405.html
HAMMOND - A federal judge will allow a lawyer to defend two key members of an alleged Chicago crime family, ruling that the lawyer's past government involvement is not sufficient for disqualification.

The ruling Thursday by U.S. District Court Judge James Moody will allow Kevin Milner to continue his representation of alleged mob boss Dominick "Tootsie" Palermo, 73, of Orland Park, and aide Nicholas "Nicky" Guzzino, 54, of Chicago Heights.

Prosecutors asked the judge to disqualify Milner and his Chicago law firm, Patrick A. Tuite Ltd., arguing that while Milner was an assistant U.S. attorney for the northern district, he helped investigate the alleged South Side crime family.

The government argued that Milner's participation in the investigation was a conflict of interest and carried the appearance of impropriety.

"We are very pleased (with the ruling)," said Milner, who is working with Patrick Tuite to defend Palermo and Guzzino in a trial scheduled for July. He joined the law firm after leaving the U.S. attorney's office.

Milner's signature was discovered on a pen register for the telephone of Bernard Morgano, one of the 15 defendants indicted along with Guzzino and Palermo last December. They are accused of running for the Chicago "Outfit," a sports betting and high-stakes gambling network in Lake County. They also are charged with extorting a so-called street tax from area gambling operations.

A pen register logs the 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, court records show.

Milner told the court he didn't remember signing the application in 1987 and had no knowledge of the investigation while working for the government. He also defended Palermo's and Guzzino's constitutional rights to seek the legal representation of their choice.

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 to be a fugitive living in his native Greece.