07311991 - News Article - Graczyk stole to pay off bets - Lost $100,000 in gambling operations

Graczyk stole to pay off bets 
Lost $100,000 in gambling operations
Post-Tribune (IN)
July 31, 1991
newsbank.com.proxy.portagelibrary.info/resources/doc/nb/news/10852CEE9D96E4BE?p=AWNB
The crime syndicate loves guys like Robert J. Graczyk.

He's a gambler. Football. Baseball. Basketball. He'd wager on horseshoes if someone would take the bet.

He bet as much as $800 on a single game. He did it almost every day, depending on the season.

Sometimes he won. Usually he lost.

He told a U.S. District Court jury Tuesday that he lost about $100,000 betting on sporting events in 1987 and 1988. His testimony came during the trial of six alleged gamblers and members of the crime syndicate. The trial focuses on collection of a street tax from Northwest Indiana gambling operations.

He lost more than he had and turned to white-collar crime to get the money to pay off what he owed.

Graczyk, 35, a Highland resident at the time, said he was down about $20,000 the night a couple of heavies pushed him around his living room wanting their money.

Graczyk said he placed most of his bets through the Nuzzo family in Merrillville. Sam Nuzzo Jr., 45, is one of the six defendants.

"I was home with my two daughters," Graczyk said, when guys named Bob and Bingo knocked on his door.

Graczyk said the men told him, "We are trying to get our money and can't collect it because Nuzzo said you hadn't paid them."

"I told them I was trying to get money and make good," Graczyk said. ''They grabbed me and threatened me and my family. They went outside for two or three minutes then took off. They parked across the street on two or three other occasions."

Graczyk was an estimator for Union Tank Car Co. in East Chicago making about $37,000 a year. His wife was making $24,000 annually.

He took a couple of part-time jobs to pay off his debts and stole from both companies.

He took a $19,841 check from Ardillo Co., a valve firm in Hammond, and another $50,000 from Clark Material Handling Inc. of East Chicago. He formed a company known as Indiana Rail and stole $15,000 from a customer.

And he said he took $35,000 from his parents.

"My mom knew what was going on," Graczyk said. "She knew I had a problem with my compulsive gambling."

Graczyk, who said he still owes $6,000, said he paid off his debts to Artie Nuzzo, Sam's brother. Artie has pleaded guilty to illegal gambling and awaits sentencing.

The government, according to a document introduced prior to the trial, contends Sam Nuzzo gave 20 percent of what he took in to the crime syndicate.

Graczyk was charged and pleaded guilty in connection with the Ardillo theft. He faces from eight months to 10 years when he is sentenced. He won't be charged for the other thefts.

Besides Nuzzo, the defendants are Dominick "Tootsie" Palermo, 73, of Orland Park, Ill.; Nicholas "Jumbo" Guzzino, 49, of Chicago Heights, Ill.; Bernard "Snooky" Morgano, 54, of Valparaiso; Sam "Frog" Glorioso, 48, of Gary, and Peter "Cadillac Pete" Petros, 56, formerly of LaPorte, now of Cicero, Ill.

FBI special agent James Cziperle took the stand Tuesday with the jury out of the courtroom to outline a conversation he had with Morgano as the two were walking into the courthouse on July 15.

"He (Morgano) said he had anxiety and was pointing to his chest," Cziperle said. "He said 'I'll be glad when this ---- is over. You play with fire and you get burned.' "

Most of Tuesday morning was taken up with the testimony of the operators of tobacco stores that fronted for gambling operations in Michigan City and LaPorte.

Edward C. Strawmier, 40, said he and his uncle, Charles Kallil, operated the United Cigar Store, 719 Franklin Square, Michigan City, until 1989.

Strawmier said he and his uncle each cleared more than $200,000 a year from sports betting, parlay cards and punch boards. He said he began paying Anthony Leone $500 a month in protection money in the fall of 1986. Leone, who also was indicted, has pleaded guilty and will testify later in the trial.

"I figured him to being connected to a syndicate, the mob," Strawmier said. "I felt intimidated. I didn't know what these people were capable of."

In the fall of 1987, Strawmier said he met Leone in a parking lot across the street from the Minos restaurant on U.S. 421 in Michigan City.

"He told me to lift up my shirt and he frisked me," Strawmier said. "He said he felt like he was being followed."

Several of the defense attorneys focused on the issue of selective prosecution, pointing out that Strawmier was granted immunity to testify about what the defendants are charged with doing.

"You consider yourself a lucky man," said Chicago attorney Kevin Milner, representing Palermo.

"Yes, I do," Strawmier said.

"You are just going on your merry way making money and everything else," Milner said. "You are not even going to have to stop your business (gambling), are you?"

"No," Strawmier said.

Donald Pytel, the owner of Lucky's Tobacco Store in LaPorte, another bookmaker, said he paid Leone $400 monthly.

The defense attorneys also suggested that Leone was acting on his own and conned Pytel and Strawmier. When Leone stopped collecting the monthly payments, no one else came around to collect the money, each said.

"I don't know if I was conned or not, but I gave it to him," Pytel said.

The government played two short tapes recorded at the Guzzino family's Taste of Italy restaurant in Calumet City, Ill.

Guzzino is heard telling Morgano to collect money, but he doesn't say for what or from whom.

There also is a reference to "Curley" wanting money collected from someone "behind on the rent." Curley is one of Palermo's nicknames. It was the first reference to Palermo.

07311991 - News Article - Gambler, bookmakers testify of payments to alleged

Gambler, bookmakers testify of payments to alleged
NWI Times
Jul 31, 1991
nwitimes.com/uncategorized/gambler-bookmakers-testify-of-payments-to-alleged/article_5ddc51d0-e5de-5340-9315-c3f7a5dfaf9e.html
HAMMOND - An admitted compulsive gambler testified Tuesday that after he ran up a $20,000 debt with a local illegal sports betting operation, he was visited by two men who threatened him and his family.

Former Highland resident Robert Graczyk said he was visited by two men named "Bob" and "Bingo," who came to his home one evening in October 1988 to talk about the gambling debt, saying they "can't collect because Nuzzo said you haven't paid."

Graczyk said he told the men that he was trying to make good on the debt, but a heated exchange followed, and they grabbed and hit him, "but not hard enough where it hurt you."

The first gambler to testify that he had trouble settling a debt with the illegal sports betting operation run by members of the Nuzzo family in Merrillville, Graczyk admitted he stole money from his employers and his parents to cover losses totaling $80,000.

He said he still owes the Nuzzo operation $6,000. He also faces time in prison for theft, time that could be reduced by his testimony in this case.

Sam Nuzzo Jr. is one of six defendants on trial for running an illegal gambling operation, extortion and racketeering. As have many of the other witnesses who said they placed bets through the Nuzzo operation, Graczyk said he had no direct dealings with Sam Nuzzo Jr.

Nuzzo's sisters, Sandra Mynes and Jennifer Kaufman; brother, Arthur Nuzzo; and father, Sam Sr., were charged in the same indictment and have plead guilty to running an illegal gambling operation.

The government is trying to show that Sam Nuzzo Jr. conspired with his co-defendants to extort a "street tax" for the Chicago "Outfit," taking thousands of dollars from local businessmen and gambling operators.

His co-defendants are Dominick "Tootsie" Palermo, 73, the reputed boss of the Outfit's Chicago South Side territory; his alleged underboss, Nicholas Guzzino of Chicago Heights; Bernard "Snooky" Morgano; Peter "Cadillac Pete" Petros of Chicago; and Sam "Frog" Glorioso of Gary.

Athansios Gerodimos testified Morgano visited his Greek coffeehouse at 53rd and Broadway in Gary, where card games for money were played.

Testifying under a grant of immunity, Gerodimos said Morgano, whose real name and nickname he did not know until after talking with government investigators, asked how business was doing and said money would have to be paid.

Gerodimos said he told Morgano he did not have anything with which to pay and refused to do so. The coffeehouse was the subject of two Gary police raids, but Gerodimos could not remember if the raids came before or after the meeting with Morgano.

Two LaPorte County bookmakers testified Tuesday that they paid a "street tax" to a man named Tony. Anthony Leone, who was charged in the same indictment with the same crimes as the six men now on trial, has pleaded guilty and will testify for the government.

Both bookmakers said they are still running illegal gambling operations today, and because they testified under a grant of immunity, they do not expect to go to prison over their illicit ventures. They took bets on football, basketball, baseball and horses and offered video poker machines, punch boards and sports parley cards.

One of the bookmakers, Edward Strawmier, testified that in the eight years he and his uncle, Charles Kallil, conducted illegal gambling from their Michigan City cigar store, they netted more than $1.6 million, proceeds that in some years were split evenly between the two.

Strawmier testified that he paid Tony $500 a month during football season in 1986 and part of the 1987 season.

He said he met Tony at the parking lot in the Holiday Inn after receiving a call from Petros, who said "he had a deal for me.

Strawmier said he was curious about the deal and met Petros even though an earlier encounter with Petros had frightened the bookmaker so much that he started carrying a gun.

At the meeting with Tony, Strawmier said, Petros left after the introduction.

"Tony told me he wanted to continue the deal Pete had going," Strawmier said. "I asked him, 'What deal?' He said, 'You should talk to your uncle.' "

Tony said he wanted $500 a month, and Strawmier said he would have to talk with his uncle. He and his uncle later agreed to pay the money. The payments were made until Tony stopped coming around before the end of the 1987 football season.

In December 1988, Strawmier said he got a call from someone who said he was calling for Tony and that the rent was due. Strawmier said he hung up on the caller and never paid any more money.

07301991 - News Article - Restaurateur, tobacco shop owner testify of shakedowns for street tax

Restaurateur, tobacco shop owner testify of shakedowns for street tax
NWI Times
Jul 30, 1991
nwitimes.com/uncategorized/restaurateur-tobacco-shop-owner-testify-of-shakedowns-for/article_28f4d443-e4dc-51b8-98a5-2462d44ea5a1.html
HAMMOND - Local restaurateur Louis Gerodemos testified Monday that he did not think it was right or fair that he pay for the privilege of holding a few gambling parties in 1987.

Bookmaker and tobacco shop owner Jeffrey Dunk said when he was approached in 1986 about paying a "street tax" to protect his illegal gambling operation in LaPorte, he "thought it was crazy."

Both men testified under a grant of immunity, reluctantly answering questions about their own illegal activities and how and who demanded a slice of the action. Gerodemos was told several times to speak louder during his testimony, and Dunk sat silent several minutes before responding to questions.

Together, they fingered Bernard "Snooky" Morgano, Nicholas Guzzino, Sam Nuzzo Jr. and Anthony Leone as being involved in the some of the shakedowns. But defense lawyers challenged much of what they said, getting them to admit they were not really frightened of these men, as they had told the government, and challenging their memories.

The government is trying to tie Guzzino, Morgano, Nuzzo and three other defendants together, alleging that they conspired to extort for the Chicago "Outfit" thousands of dollars from local businessmen and gamblers.

The six, including Dominick "Tootsie" Palermo, 73, the reputed boss of the group's Chicago South Side territory; Peter "Cadillac Pete" Petros of Chicago; and Sam "Frog" Glorioso of Gary, face charges of gambling, racketeering and extortion.

Also Monday, retired Gary police Officer Mike Mione said he spent two years in a federal prison for paying Gary police Officer Willie Ray Turley $500 in 1983 to raid three illegal gambling houses in the city.

Mione said Anthony Leone asked him to bribe the officer so Leone could "shake them (the gambling houses) down for money after they were raided."

Leone was charged in the same conspiracy with the other six defendants, but he has pleaded guilty and will testify against his co-defendants.

Gerodemos said he was first approached about paying protection money in 1987, when Morgano demanded $500 if any gambling was to be held at an upcoming Super Bowl party Gerodemos planned in the basement of his Lake of the Four Seasons restaurant, Mr. G's.

Gambling - poker, blackjack and barbooth - was the featured entertainment at the party, and three others, including a surprise birthday party for Gerodemos; a retirement party for his friend Steve Jandura, a former Lake County police officer; and one for the benefit of a local union.

The union's party was raided by police, putting an end to the parties and putting a gambling conviction on Gerodemos' record.

After Jandura's party, Morgano repeated his demand for money, raising the cut to $1,000, Gerodemos said. Each time, Gerodemos said he was told by Arnie Bard, the man who ran the illegal games at the parties, that Bard had met the demands.

Gerodemos testified that he did not know if Bard ever paid Morgano.

On one occasion after Jandura's party, Gerodemos said, Morgano and Guzzino visited Mr. G's. But Gerodemos' recollection of the meeting was hazy, and he had to rely on his written grand jury statement to answer the government's questions about it.

Gerodemos said Guzzino did not say much, but "Snooky was their man for whatever takes place in Indiana," and "Let's stay friends." After the meeting, Gerodemos said he received a call from Nuzzo, who asked if anybody had talked to him and how much money was demanded.

Under questioning by the government, Gerodemos said he found the meeting with Guzzino and Morgano upsetting.

"I felt very intimidated and afraid just over the fact that Guzzino accompanied Morgano," Gerodemos said, "since I know Guzzino was connected to the 'Outfit.' "

But under questioning by the defense, he later said he wasn't scared of the men.

Dunk, a LaPorte businessman, also admitted he was not afraid of Leone, the man who demanded money from him.

Dunk said he was introduced to Leone by Petros, who often bragged of his big connections. Dunk said he did not believe "Cadillac Pete," who he understood came by his nickname as a joke about the car he once owned.

Pete only brought Leone to the shop and did not participate in any of the meetings where paying a "street tax" was discussed, Dunk said.

Admitting to running illegal gambling for the last 20 years from his Ye Old Pipe Shoppe, Dunk said Leone originally demanded $500 a month but after some negotiation, accepted $400.

"Tony said everyone had been awfully lucky there hadn't been a street tax paid and basically there should be," he said.

Dunk admitted he has made hundreds of thousands of dollars from the illegal gambling operation he still directs out of his tobacco shop.

He said he stopped paying payments in 1987, when Leone did not come by his business anymore.

"Have you every heard of a one-man Mafia?" said defense lawyer Ronald Menaker, who represents Guzzino. "Didn't it seem odd that after Mr. Leone stopped coming around and nobody else was sent to collect?"

"I was just glad nobody came around," Dunk said.

Menaker asked Dunk if the only "man who ever bothered you" was sitting in the courtroom.

"No," Dunk said.

07301991 - News Article - Pipe shop is gambling front - Under immunity, Dunk says he is continuing operations

Pipe shop is gambling front 
Under immunity, Dunk says he is continuing operations
Post-Tribune (IN)
July 30, 1991
infoweb.newsbank.com.proxy.portagelibrary.info/resources/doc/nb/news/10852CEE53005886?p=AWNB
Jeffrey Dunk has used the Ye Olde Pipe Shoppe in downtown LaPorte as a front for a variety of gambling operations for the last 20 years.

He talked about it in U.S. District Court Monday under a grant of immunity from prosecution.

He admitted he hasn't slowed down much since appearing before a federal grand jury and agreeing to testify for the prosecution against six alleged gamblers and members of the crime syndicate.

"You are gambling and running your illegal business even as we speak," said Chicago attorney Kevin E. Milner, representing Dominick "Tootsie" Palermo, 73, the alleged mob boss for gambling operations for Northwest Indiana and Chicago's south suburbs.

"Correct," Dunk said.

"Your business is going to be going on," Milner said. "That's how you make your money. Correct?"

"Correct," Dunk said.

After asking Dunk if he knew why the government isn't prosecuting him, Milner said, "You are not an Italian man, are you, sir?" a reference to the crime syndicate comprised of those of Italian descent.

Dunk said he either has or continues to make book on sporting events, print and distribute his own parlay cards, operate punch boards and pull tabs, put on Las Vegas night parties, provide a video poker machine and charge the local residents to bet on rummy games in the back room of his pipe shop.

The only legal glitch was in the early '80s when Dunk had a video poker machine provided by Peter "Cadillac Pete" Petros, one of the defendants.

Dunk, saying the machine lasted just three months, added, "The chief of police in our town didn't want it there."

Other than the flap over the poker machine, things rolled along for Dunk until the fall of 1986 when word apparently spread that his operation was growing.

Dunk said Petros tried to get a piece of his action, suggesting he had the crime syndicate to back him. When he didn't buy in, Dunk said Petros brought Anthony Leone to see him.

"He brought up the subject of a street tax," Dunk said of Leone.

"I told him in my town that was unheard of," Dunk said. "I told him I'm country-fied and he's city-fied and that's two different ways of life."

Dunk began paying Leone $400 a month in the fall of 1986. It later went to $500 monthly.

Leone, too, was charged, but is cooperating with the government and will testify later in the trial.

Leone, 50, of Valparaiso, is hoping to get a reduction in the eight-year prison term he received two years ago for operating an illegal lottery in Gary.

Dunk said that when Leone quit coming around in the fall of 1987 that he never again was asked to pay a street tax.

"You ever hear of a one-man mafia?" Milner asked.

"No sir," Dunk said.

Dunk also said Petros wasn't taken very seriously around LaPorte. He said Petros had been in a psychiatric ward in a Veteran's Administration hospital and around town was looked upon as a nuisance.

Louis Gerodemos, a longtime area gambler who has operated the Paragon restaurants in Hobart and Schererville, Alexander's in Highland and Mr. G's near Lakes of the Four Seasons, spent the morning on the witness stand.

Gerodemos, 58, too, had a grant of immunity, but avoided looking at the defendants and was reluctant to say anything against them.

Assistant U.S. Attorney Michael A. Thill had to repeatedly direct Gerodemos to his 1988 grand jury testimony in which he was more graphic about his gambling dealings.

"I don't have that much a education to remember anything," Gerodemos told Crown Point attorney John M. McGrath, who is representing Petros. "I didn't go to school. I only went second grade."

Gerodemos said Bernard "Snooky" Morgano, 54, of Valparaiso, approached him before he held four gambling parties in the basement of Mr. G's in 1987. He said Morgano told him there would be a $500 assessment per party. It later was hiked to $1,000, Gerodemos said. He said there was poker, blackjack and barbotte, a Greek dice game, at the parties.

Prior to the second party, Gerodemos said Morgano and Nicholas "Jumbo" Guzzino came to the Paragon in Hobart.

"I felt very intimidated and afraid that Guzzino accompanied Morgano to my restaurant," Gerodemos said. "I knew Guzzino was connected with the Outfit."

Guzzino, 49, of Chicago Heights, Ill., is alleged to be Palermo's top lieutenant.

Michael Mione, a retired Gary policeman, testified that Leone approached him in 1986 and asked him if he knew anyone in the vice squad at the Gary Police Department.

Mione said he gave a policeman $500, on behalf of Leone, to raid three gambling operations that were competing with Leone. Mione said the ploy was for Leone to extort protection money from his three competitors after the raids.

07271991 - News Article - Ex-cop outlines role in gambling scheme

Ex-cop outlines role in gambling scheme
NWI Times
Jul 27, 1991
nwitimes.com/uncategorized/ex-cop-outlines-role-in-gambling-scheme/article_0f5c963b-e6d8-5b5b-8b62-668d71ac808a.html
HAMMOND - A former Gary policeman testified Friday that he was partners in an illegal gambling establishment with Sam Nuzzo Jr. and helped distribute betting cards for the Nuzzo family.

Testifying under a grant of immunity, John Pantinas told the jury that he was involved in illegal gambling, from poker games to parley cards to barbooth, for much of the 1980s, and much of it was done in association with the Nuzzo family of Merrillville.

Sam Nuzzo Jr. is one of five defendants charged with running an illegal gambling business, extortion and racketeering. The federal government maintains that Nuzzo controlled much of the gambling in Lake County and he, along with the other defendants, conspired to extort money for the Chicago "Outfit" from other illegal gambling operations.

Also on trial are: Dominick "Tootsie" Palermo, 73, the reputed boss of the group's Chicago South Side territory; his alleged lieutenant, Nicholas "Jumbo" Guzzino of Chicago Heights; Bernard "Snooky" Morgano of Valparaiso, the alleged boss of Northwest Indiana; Peter "Cadillac Pete" Petros of Chicago and Sam "Frog" Glorioso of Gary, who both allegedly collected the "street tax."

Pantinas and other witnesses who testified Friday told of widespread illegal gambling in Northwest Indiana, of barbooth games that lasted 24 hours, netting as much as $15,000 for the sponsor, of thousands of parley cards distributed each week so bets could be solicited on football and basketball games and of Las Vegas nights complete with poker, black jack and slot machines.

Defense lawyer Scott King got Pantinas to admit that some of that illegal gambling is still going on today, showing him a horse betting slip with Monday's date, the day the jury was picked for the trial.

Under questioning by King, Pantinas said Frank Burton, one of the government's witnesses expected to testify in the case, is today operating an illegal gambling business in Gary.

Pantinas said he resigned from the Gary Police Department in 1977 after serving eight years on the force because "it didn't mix with what I like to do." What Pantinas liked to do was gamble.

Besides the parley cards, bets could also be placed on horses, football and basketball games by calling two phone numbers manned by Nuzzo's sisters Sandy and Jennifer. Brother Arthur, or "Artie," settled bets with gamblers by meeting them at area restaurants, taverns or their place of business, witnesses testified. Artie also picked up parley cards used for sports betting from a LaPorte printer, Pantinas said.

Pantinas began his association with Sam Nuzzo Jr. in the early 1980s, when he said he was asked by Nuzzo to continue distributing parley cards that Nuzzo was taking over from another bookmaker.

In addition to the parley cards, Pantinas said he jointly ran a Greek coffeehouse at 4577 Broadway in Gary. Although he didn't put any money in the illegal gambling operation, Pantinas said he given a 25 percent cut by Nuzzo.

Pantinas said he was a dealer for the illegal card games held at the coffeehouse.

From the poker and other card games played at the coffeehouse, Nuzzo and Pantinas shared a "juice" of about $5 or $6 out of every $100 in the pot, Pantinas testified. A typical evening could net between $500 and $1,000.

Pantinas said he also helped run a Greek dice game known as barbooth for Steve Sfouris at the Old Robert Hall building on State Street in downtown Hammond. The games later were moved to the Indiana Restaurant in the Indiana Harbor section of East Chicago.

The barbooth games, which are won and lost by different combinations on the dice, would sometimes last 24 hours and were played seven days a week, Pantinas said. The house kept 2.5 percent of the bets and would average $5,000 to $10,000 a night.

Nuzzo and Morgano were among some of the gamblers who played cards at the Greek coffee houses Pantinas said he worked.

Before Pantinas testified before a grand jury, he said he talked to Morgano. "He didn't tell me anything, but he thought he could be going to jail over this entire situation," Pantinas told the jury.

Morgano's lawyer, Richard James, asked Pantinas if Morgano could have referred to the gambling Morgano did. Pantinas said "yes."

Another barbooth dealer for Sfouris, Dan Georgopoulos, testified Friday that his cousin Gus Proimos owned a Greek coffeehouse at 38th and Broadway in Gary where illegal card games were held. Georgopoulos recalled that sometime after 1984 a man who called himself "Cadillac Pete" told him that his cousin was going to have to pay about $400 or $500 a month.

Georgopoulos said he asked if he was paying for protection and, if so, who they could call if the police raided the coffeehouse. He said "Cadillac Pete" told him a police raid was not his problem, and repeated the demand for money.

Georgopoulos said he refused to pay, and to his knowledge nothing happened to his cousin as a result.

07271991 - News Article - Ex-county insurer implicated in trial

Ex-county insurer implicated in trial
Post-Tribune (IN)
July 27, 1991
infoweb.newsbank.com.proxy.portagelibrary.info/resources/doc/nb/news/10852CEA6702E00A?p=AWNB
Former Lake County government insurance agent James J. Bradach was a frequent player in high-stakes poker games, two witnesses said Friday during the trial of six alleged gamblers and members of the crime syndicate.

John Pantinas and Frank Travline, a retired Gary firefighter, both said Bradach often took part in the poker games held at Greek coffee houses in Glen Park and in the basement of Saverio Amatulli's home in Merrillville. Each testified under a grant of immunity.

The witnesses said the house "raked" as much as $1,000 per game. A rake is the operator's cut of every pot. The maximum bet per card was $10 unless the players opted for higher stakes the witnesses said.

Bradach is serving a 30-month sentence on a federal perjury conviction for lying in court about the reason he paid three men more than $400,000 over an 18-month period in the mid-1980s. Bradach, 50, of St. John Township, had the lucrative county insurance contract at the time.

One of the people to whom Bradach paid the money was James Hetrick, an admitted gambler, who was charged with perjury as a part of the Bradach scam, but acquitted.

The testimony Friday came from gamblers, dealers and parlay card runners.

Bernard "Snooky" Morgano, 54, of Valparaiso, the alleged street boss for Northwest Indiana gambling, met with Pantinas after Pantinas received a grand jury subpoena.

"He didn't tell me anything other than he thought he could be going to jail because of this entire situation," Pantinas said.

"Did he tell you to lie?" asked Dyer attorney Richard F. James, representing Morgano.

"No, sir," Pantinas said.

The other defendants, all charged with racketeering, are Dominick ''Tootsie" Palermo, 73, of Orland Park, Ill.; Nicholas "Jumbo" Guzzino, 49, of Chicago Heights, Ill.; Sam Nuzzo Jr., 45, of Merrillville; Sam "Frog" Glorioso, 48, of Gary; and Peter "Cadillac Pete" Petros, 56, formerly of Gary now of Cicero, Ill.

The charges stem from the collection of a street tax on gambling operations.

Pantinas said he and Nuzzo opened a Greek coffee house in the mid-1980s at 4577 Broadway. He said Nuzzo and Arnie Bard, a longtime name in the Gary auto parts business, later opened a coffee house at 45th Avenue and Cleveland Street in Calumet Township.

Pantinas, who said Nuzzo played as well as operated the coffee houses, added, "Yes, he is a big bettor. He's a gambler."

But the prosecution alleges that Nuzzo did more than gamble. A pre-trial court document indicates that Morgano told Guzzino that he was collecting 20 percent of everything Nuzzo brought in.

Besides the coffee houses, the prosecution contends Nuzzo operated football and basketball parlay cards and ran the sports betting for Lake and Porter counties.

Several witnesses said they picked up parlay cards from Arthur Nuzzo, Sam's brother, and Ned Pujo, owner of the Beer Baron Tavern in Ross Township. Arthur Nuzzo has pleaded guilty to illegal gambling and faces up to five years in prison. Pujo, of Portage, will be tried later.

Patrick Newell, who works for Ford in Chicago Heights, said he distributed the cards among fellow workers and turned in a minimum of $1,000 a week to Pujo. Newell said he was allowed to keep 25 percent of what he brought in.

George Kolettis, an employee of the Gary Department of Environment, and his brother, James Kolettis, a Republic Steel employee, both said they distributed parlay cards and dealt with Arthur Nuzzo and Anthony "Potatoes" Ottomanelli, 60, of Portage. Ottomanelli has pleaded guilty and awaits sentencing.

Norman Jerntt, a LaPorte printer, said he printed as many as 13,000 parlay cards a week for Arthur Nuzzo.

Pantinas and Dan Georgopoulos each said they also dealt barbotte, a big- money Greek dice game operated by Steve Sfouris of Munster. Sfouris fled to his native Greece prior to the indictment. The games were operated at the former Robert Hall building in Hammond and the Indiana Restaurant building in East Chicago.

Georgopoulos said the rake on a barbotte game was as high as $15,000 a day. He added that he saw a player lose $80,000 in a game that ran for three days.

Several witnesses testified to attending gambling parties in the basement of Mr. G's restaurant near Lakes of the Four Seasons. The games were operated by Louis Gerodemos, who has since sold the business. The witnesses said money was raked from every pot. Gerodemos, who is cooperating with the government, is expected to testify next week.

Gary attorney Scott King, representing Petros, asked Pantinas if he knows whether Franklin Burton is still making book (taking bets) at the Magazine Mart, a store he operates at 39th and Broadway in Glen Park.

"Yes," Pantinas confirmed.

King introduced a betting slip that he said was obtained from Burton on Monday. Burton, who isn't charged, will testify for the government.

07261991 - News Article - Local notables testify, admit gambling with Nuzzo ring

Local notables testify, admit gambling with Nuzzo ring
Post-Tribune (IN)
July 26, 1991
infoweb.newsbank.com.proxy.portagelibrary.info/resources/doc/nb/news/10852CE984A0AF22?p=AWNB
A physician, an insurance broker and the owner of a chain of sporting- goods stores testified Thursday that they each bet about $500 weekly on football and basketball games through the Nuzzo family, but just one of them fingered Sam Nuzzo Jr.

Dr. Charles Yast, a Merrillville ear, nose and throat specialist, said he began placing bets with bookmakers George Petroff and James "Jungle Jim" Tonevich but switched to the Nuzzo family in 1984 when Petroff died.

Yast said he bet on five to eight football games per weekend and 10 to 12 basketball games weekly.

Over the years, Yast said, he lost a very small amount of money.

"It probably would be close to what I spend at the movies for less fun," Yast said.

Yast said he placed his bets by telephone with Jennifer Kaufman and Sandra Mynes and that Arthur Nuzzo would stop by his office weekly to drop off his winnings or pick up his losses. Arthur is Sam Nuzzo Jr.'s brother and the two women are their sisters.

Those three, as well as their father, Sam Nuzzo Sr., all of Merrillville, have pleaded guilty to illegal gambling.

Sam Nuzzo Jr. is one of six defendants in U.S. District Court charged with racketeering, extortion and gambling. He is the alleged leader of the sports betting operations in Northwest Indiana.

The other defendants are Dominick "Tootsie" Palermo, 73, of Orland Park, Ill.; Nicholas "Jumbo" Guzzino, 49, of Chicago Heights, Ill.; Bernard ''Snooky" Morgano, 54, of Valparaiso; Sam "Frog" Glorioso, 48, of Gary; and Peter "Cadillac Pete" Petros, 56, formerly of Gary and now of Cicero, Ill.

Of the four who testified to placing bets through the Nuzzo family, just William Mercer, an area insurance broker, fingered Sam Nuzzo Jr.

Mercer said he approached Sam Jr. at HyDad's, a Merrillville tavern owned by the Nuzzos, and asked if he could bet football games through him.

"He gave me a code number and a telephone number," Mercer said.

He said he settled up twice during the football season, once with Sam Jr. and once with Art.

Michael Stolarz, owner of the five Mike's Sporting Goods stores in Northwest Indiana, said he began making weekly football and basketball bets in 1980. He said he placed them by telephone with Kaufman and Mynes and that Art came by his Glen Park store to handle the money transactions. Stolarz didn't mention Sam.

Stolarz said $600 was the most he lost on any weekend. He said he also played football and basketball parlay cards on a weekly basis.

"Somebody dropped the parlay cards off at the Gary store," Stolarz said. ''I believe it was a gentleman by the name of Frog (Glorioso)."

Michael Waisnora, the general manager at Stolarz's Glen Park store, said he placed bets during the 1987 football season and picked up his winnings or paid off his losses through Ned Pujo at the Beer Barrel Tavern in Ross Township. Waisnora said he never met Sam Nuzzo Jr.

Pujo and his wife, Yolande, the operators of the tavern, will be tried later on gambling charges.

Also Thursday, two video poker machine distributors testified that Petros attempted to extort protection money from them on behalf of the crime syndicate.

Charles Hescher, owner of Star Amusements of Calumet Township, said Petros told him he "had to pay the piper. He said we had to pay for having these things. I was confused. I really didn't believe it. I was scared."

Hescher, who had 30 video poker machines in area taverns, said Petros wanted $1,000 a month. Hescher said he never paid and never heard again from Petros.

Gus Iatrides, the owner of Cassidy's, a Hammond tavern, said he had about six machines in his tavern and placed a few others at Fanny's in Gary and Caper's in Hammond, both strip joints. Fanny's recently burned.

"He said he was sent in by the boys," Iatrides said, adding that he told Petros he would take his machines out rather than pay. He didn't pay and the machines stayed.

Iatrides said Petros came back and gave him a stack of parlay cards. He said he threw away the parlay cards and never heard again from Petros.

Assistant U.S. Attorney Michael A. Thill spent much of the day going through the laborious process of introducing tapes gathered by telephone wiretaps and microphones placed in the Taste of Italy restaurant in Calumet City, Ill.

Several defense attorneys questioned the value of the tapes because the FBI agents acknowledged that the court order allowing for the wiretaps mandates the agents not listen to or record conversations unless they pertain to the matter being investigated.

Many of the comments on the tapes might be out of context because the agents had to selectively listen, the defense lawyers argued. U.S. District Judge James T. Moody admitted more than 200 of the recordings. They will be played at a later date.

07261991 - News Article - Poker vendors say they were forced to pay for protection

Poker vendors say they were forced to pay for protection
NWI Times
Jul 26, 1991
nwitimes.com/uncategorized/poker-vendors-say-they-were-forced-to-pay-for-protection/article_d0e33696-8866-5e3d-8583-3815cdb65167.html
HAMMOND - Video poker machine vendor Charles Hescher said he was "dumbfounded" when a man came into his business and told him "it was time to pay the piper."

Hescher, owner of Star Amusement of Gary, testified Thursday that the man who demanded he pay $1,000 a month for the privilege to distribute video poker machines called himself "Cadillac Pete."

Tavern owner Gus Iatrides testified that "Cadillac Pete" also demanded money from him. The owner of Cassidy's Bar in Hammond said Pete wanted $50 a month for each machine he had in his own bar and for machines in other locations.

Pete said he was sent in to collect by "the boys," said Iatrides, who told the jury he didn't know who "the boys" were, but believed they were the syndicate.

Neither men paid and nothing happened to them, a point defense lawyers trumpeted Thursday in the trial of Peter "Cadillac Pete" Petros and five other alleged members of the "Outfit" organized crime family.

Accused of extortion, racketeering and gambling are: Dominick "Tootsie" Palermo, 73, the reputed boss of the Chicago South Side territory for the "Outfit;" his alleged lieutenant, Nicholas "Jumbo" Guzzino of Chicago Heights; Bernard "Snooky" Morgano of Valparaiso, the alleged boss of Northwest Indiana; Sam Nuzzo Jr. of Merrillville, who allegedly controlled much of Lake County's illegal gambling; Petros of Chicago; and Sam "Frog" Glorioso of Gary, who both allegedly collected protection money.

Also testifying Thursday were some of the gamblers who said they placed bets with the Nuzzo family.

The bulk of the day, however, was devoted to the introduction of more than 200 tapes obtained from hidden microphones placed in the Taste of Italy restaurant in Calumet City and wiretaps placed on the phone of Morgano and Anthony Leone, a defendant who has pleaded guilty and will testify for the government at the conclusion of the trial.

U.S. District Court Judge James T. Moody allowed the tapes to be entered as evidence over the objection of defense lawyers, who tried to discredit their authenticity and grilled FBI agents over how they could identity speakers and how they could take bits and pieces of conversations and construe meaning from them.

Under the court order obtained for bugging the restaurant and taping the private phones, agents were not allowed to record any conversations that did not indicate criminal activity or did not involve the targeted people. Agents testified that they would stop and start the recordings according to the types of conversations.

The tapes were not played for the jury on Thursday, but are expected to be heard later in the trial.

The jury heard the first testimony Thursday from gamblers who, testifying under a grant of immunity, said they placed bets on football and basketball games by calling a couple of telephone numbers.

They said they used a number in place of their names, and each time they called they were given an accounting of their wins and losses and the odds for the upcoming games. The average bet ranged from $25 to $100 a game and a "juice" of 10 percent was payed on all losing wagers.

Mike Stolarz, owner of Mike's Sporting Goods, said he began placing bets on the two telephone numbers sometime in the mid-1980s with "Jennifer" and "Sandy," who he said were related to the Nuzzos.

Winning as much as $400 to $500 a week and losing as much as $500 to $600, Stolarz said he would settle his account when "Artie" Nuzzo would visit his Gary sporting goods store. He said he also was visited for a number of years by a man named "Frog" who would drop off parley cards used for betting on sporting events.

Merrillville doctor Charles Yast also testified he placed bets on the phone lines, giving his wager to Sandy and Jennifer Nuzzo - their maiden names - with Artie settling the account with a visit to his office. Yast said he had no dealings with Sam Nuzzo Jr. concerning gambling.

Sam Jr.'s brother Arthur Nuzzo, his sisters Jennifer Kaufman and Sandra Mynes and his father Sam Nuzzo Sr., all of Merrillville, pleaded guilty last week to running an illegal gambling operation. All of them were charged in the same 30-count indictment. In addition to the gambling charges, Sam Nuzzo Jr. is accused of extortion and racketeering.

07251991 - News Article - Janowsky wanted to pay 'right people'

Janowsky wanted to pay 'right people'
NWI Times
Jul 25, 1991
nwitimes.com/uncategorized/janowsky-wanted-to-pay-right-people/article_37c16485-9b7f-5af8-98c5-90908a9e3cb2.html
HAMMOND - Vending machine operator Timothy Janowksy wanted to know if he was paying "the right people" to protect his lucrative illegal electronic video poker machines he placed in Lake County taverns and restaurants in the early 1980s.

Were the "right people" former Lake County Chief of Police Michael Mokol, East Chicago political powerbroker Vincent Kirrin or a group of competitors that included Richard Piekarski and Gary Novak, who tried to shake down Janowsky for a hefty take of the profits from his video poker machines?

Wearing a body recorder and working as an FBI informant, Janowsky, owner of Geno's Vending, tried to sort out whom to pay and who would deliver with the man who professed to be "the right people." That man was Peter "Cadillac Pete" Petros, one of six defendants now on trial in U.S. District Court in Hammond.

"...word will go out on the street that Geno is with the right people and that once word gets out, ain't nobody can ... bother ya," Petros told Janowsky during a January 1985 meeting that was recorded and played in court Wednesday.

Facing charges of gambling, racketeering and extortion are: Dominick "Tootsie" Palermo, 73, the reputed boss of the Chicago South Side territory for the "Outfit" organized crime family; his alleged lieutenant, Nicholas "Jumbo" Guzzino of Chicago Heights; Bernard "Snooky" Morgano of Valparaiso, the alleged boss of Northwest Indiana; Sam Nuzzo Jr. of Merrillville, who allegedly controlled much of Lake County's illegal gambling; Petros of Chicago and Sam "Frog" Glorioso of Gary, who both allegedly collected protection money for the "Outfit."

Janowsky, who testified under a grant of immunity, and other vending machine owners and bookmakers took the witness stand Wednesday to talk about the fear they felt for their businesses and families if they didn't pay the "street tax" demanded by the "Outfit."

Defense lawyers questioned them extensively about their fears, calling Petros "a goofy Greek gentlemen" who would pick up envelopes. Bookmaker Charles Hipsak said despite his fears he refused to pay the $1,000 a month that Petros demanded. Nothing happened, Hipsak said, when he didn't pay.

But there were plenty who apparently did pay.

For $3,000 a month, Petros said on the Janowsky tapes that he would try to "squash" the $1,300 a month Janowsky was paying Mokol and eliminate the threats and competition from Piekarski and Novak. Petros said he couldn't make any promises without talking with "the old man" who took care of the "complex," referring to the Lake County Government Complex.

Janowsky was a key witness in the October 1983 federal extortion trial of Frank R. Esposito and Richard Piekarski of Crete, Ronald Figurski of Dolton and Gary Novak of Crown Point. All were charged with trying to shake down Janowsky.

Vending machine owner Reginald Kinkade tells Janowsky on the same tape that the mob had lost a lot of "clout" over the past eight or nine years, but was trying to regain its influence. "And if they get organized and you're not part of it, or I felt if I'm not part of it ... they're gonna, they're gonna waste us," Kinkade said.

Kinkade also tells Janowsky on the tapes that the mob controlled "Nicosia," and had their "hooks" into "Stiglich" and "Hatcher," and financed political campaigns of former Lake County Sheriff Chris Anton and "Stiglich."

Joseph Nicosia was the former mayor of East Chicago; Richard Hatcher was mayor of Gary and Stephen Stiglich has been Lake County sheriff since 1985. The tapes identify Nicosia, Hatcher and Stiglich only by their last names.

Kinkade said he first was approached by Petros about paying his "dues" in the summer of 1984 and later began paying him $2,500 a month. Kinkade also protected his video poker operation by paying bribes to Mokol and others, a crime for which he received a 20-year sentence in 1990. In exchange for his testimony and cooperation in this case, Kinkade said his sentence could be reduced.

Defense lawyers questioned Kinkade about whether his fear of Petros was real. Kinkade said shortly after his encounter with Petros, he put a number of security measures in place at his business. "I thought they would burn the shop, hurt an employee," said Kinkade, owner of Variety Amusement in East Chicago. "I had my family working with me then. He (Petros) said he was with the mob from Chicago."

Kinkade said he sought out Frank Zizzo, the one-time boss of Lake County gambling who died in 1986, to learn if Petros was the right person to pay. He said he approached Zizzo at a restaurant in Calumet City, identifying him from a photograph. Kinkade said the two met in the bathroom. "I asked him if Pete was his guy. He said 'yes,' " Kinkade told the jury. "He told me he didn't like him very much, but that's who they had sent him."

Kinkade said after Zizzo's death, he was told by Petros that "Snooky" had taken over and that he "was up to date with all the modern equipment. He had a van that had scanners. He had his fingers in everything."

07251991 - News Article - Kinkade testifies in 'street tax' trial - Says he paid 'Cadillac Pete'

Kinkade testifies in 'street tax' trial 
Says he paid 'Cadillac Pete'
Post-Tribune (IN)
July 25, 1991
infoweb.newsbank.com.proxy.portagelibrary.info/resources/doc/nb/news/10852CE6B162C416?p=AWNB
Reginald Kinkade has been paying ever since he got into the video poker business in the early 1980s.

He paid off the police.

He paid when the crime syndicate demanded a piece of his take.

He made a down payment on a piece of freedom in U.S. District Court Wednesday during the trial of six reputed gamblers and members of the crime syndicate. The charges stem from collection of a "street tax" from Northwest Indiana gambling operations.

Kinkade, owner of Variety Amusement Co. of East Chicago, was sentenced to 20 years in prison last fall following his racketeering conviction for bribing Lake County Sheriff Rudy Bartolomei. He hasn't served a day. He has a sentence reduction hearing following this trial.

Kinkade also paid himself. Handsomely. He made as much as $1.7 million a year through the 130 video poker machines he had in area taverns, restaurants and fraternal lodges.

For a two-year period, beginning in the fall of 1984, Kinkade said he paid $2,500 monthly to Peter "Cadillac Pete" Petros.

"Why did you pay?" Assistant U.S. Attorney Michael A. Thill asked Kinkade.

"I felt they would burn the shop or hurt an employee," Kinkade said. ''He indicated he was with the mob in Chicago."

Most of the testimony Wednesday focused on Petros, whom Kinkade and other witnesses described as a bag man for the crime syndicate.

Petros, 56, formerly of Gary and now of Cicero, Ill., is being tried with Dominick "Tootsie" Palermo, 73, of Orland Park, Ill.; Nicholas "Jumbo" Guzzino, 49, of Chicago Heights, Ill.; Bernard "Snooky" Morgano, 54, of Valparaiso; Sam "Frog" Glorioso, 48, of Gary; and Sam Nuzzo Jr., 45, of Merrillville.

The FBI seized records of Kinkade's payments to Petros from a safe in the basement of Kinkade's home. The payment entry said, "Hoods."

Before he started the payments to Petros, Kinkade said he met Northwest Indiana street boss Frank Zizzo in the men's room at John's Restaurant in Calumet City, Ill.

"I asked if Pete was his guy," Kinkade said. "He said 'yes.' He told me he didn't like him very much but that's who they sent him."

Kinkade said Petros told him sometime in 1986 that Zizzo had died.

"Did he indicate who had taken over for Zizzo?" Thill asked.

"Yes, Snooky (Morgano)," Kinkade said, adding that Petros told him Morgano had a well-equipped van, including police scanners.

Kinkade, upon questioning by Dyer attorney Richard F. James, representing Morgano, said he has neither met nor talked to Morgano.

Defense attorney John M. McGrath, representing Petros, asked Kinkade why he went to the government after being sentenced.

"Besides what I was convicted for, there was a lot more out there," Kinkade said. "I didn't want to be tried again."

"You bribed a number of law enforcement officials," McGrath said.

"There were a few," Kinkade said.

"Was it closer to 10 than it was to two?" McGrath asked.

"It was between two and 10," Kinkade said.

McGrath suggested to Kinkade that he was using Petros to get rid of his competitors in the video poker business, rather than making payoffs.

"No, that's not true," Kinkade said.

McGrath also asked, "Weren't you getting $1,000 a week per machine?"

"I don't think I was getting that much," said Kinkade, who earlier stated he got about $250 a week per machine. He said the tavern owner got a like amount per machine.

Timothy Janowsky, who cooperated with the FBI for several years by wearing a body recorder testified. Janowsky owns Geno's Vending in Ross Township.

On a tape of a conversation between Janowsky, Kinkade and Petros, Janowsky said he was paying $1,300 monthly in protection money to Bartolomei, former Lake County Police Chief Michael Mokol and retired detective Donald Midkiff.

Janowsky told Petros he would pay him $3,000 a month if Petros would see to it that he didn't have to pay the county police any longer.

"What if Rudy comes down on me?" Janowsky asked Petros.

"They ain't gonna come down on you," Petros said.

07241991 - News Article - Tape of bugging - Pledged 'street tax' trial opens

Tape of bugging 
Pledged 'street tax' trial opens
Post-Tribune (IN)
July 24, 1991
infoweb.newsbank.com.proxy.portagelibrary.info/resources/doc/nb/news/10852CE55801D99B?p=AWNB
Three reputed members of the crime syndicate's Northwest Indiana gambling operations sat in the Taste of Italy restaurant in Calumet City, Ill., and wrestled with the problem of police surveillance.

"They were telling each other what to look for to avoid surveillance," said Assistant U.S. Attorney Michael A. Thill during his opening statement in U.S. District Court Tuesday.

The three - Dominick "Tootsie" Palermo, Nicholas "Jumbo" Guzzino and Bernard "Snooky" Morgano - had no idea the surveillance they so feared was just feet away.

"The FBI got permission from the judge to break into the restaurant and place two bugs," Thill said.

Besides Palermo, 73, of Orland Park, Ill.; Guzzino, 49, of Chicago Heights, Ill., and Morgano, 54, of Valparaiso, the other defendants are Sam Nuzzo Jr., 45, of Merrillville; Sam "Frog" Glorioso, 48, of Gary, and Peter ''Cadillac Pete" Petros, 56, formerly of Gary, now of Cicero, Ill.

U.S. District Judge James T. Moody recessed court for the day following the opening statements by the prosecution and defense attorneys.

Thill, in his lengthy opening, talked about alleged threats and violence that accompanied the crime syndicate's collection of a "street tax" from Northwest Indiana gambling operators.

Besides the bugs at the Taste of Italy, which is operated by Guzzino's brother, Dominick Guzzino, Thill said the government has recordings from taps on Morgano's home telephone and Anthony Leone's home and car telephones.

There also are photographs, a videotape and tapes obtained through the use of body recording devices.

Leone, of Valparaiso, may be the government's key witness. He was sentenced to eight years in prison in December 1988 after being convicted of operating an illegal lottery in Gary. He was released from prison a month ago because of his cooperation with the prosecution. He was indicted with the defendants, but pleaded guilty.

After Morgano suffered a heart attack in 1986, Leone took over as the street boss for Northwest Indiana gambling operations, Thill said.

Thill said Leone will testify that the biggest money was collected from Steve Sfouris of Munster, the leading operator of barbotte, a Greek dice game. Sfouris, who is charged, fled to his native Greece.

After barbotte, Thill said the syndicate collected the most money from Nuzzo, who headed up the sports betting and parlay card operations.

Louie Gerodemos, who formerly operated Mr. G's Restaurant near Lakes of the Four Seasons and periodically runs gambling, is expected to testify that Morgano and Guzzino muscled him for $1,000 in protection money to hold a gambling party at his own restaurant. The party was for Steve Jandura upon his retirement from the Lake County Police Department.

Thill said an FBI agent will testify that Guzzino said, "This guy (Gerodemos) has it all. There has to be some accounting and sharing. It's not fair."

Chicago attorney Kevin E. Milner, representing Palermo, said, "Not one person will tell you Dominick Palermo ever extorted a penny. Listen to the tapes. You are going to have a devil of a time hearing anything. There will be no other evidence regarding Mr. Palermo. Just what the government thinks these tapes say."

Palermo is the reputed boss of the syndicate's operations for Chicago's south suburbs and Northwest Indiana.

Chicago attorney Ronald Menaker, representing Guzzino, ripped into Leone, who will be the government's key witness against Guzzino.

"The prosecution has purchased, bought the testimony of Anthony Leone," Menaker said.

"Bought with something more important to Mr. Leone than money - his freedom. His (Leone's) own selfish greed and self-interest. That's what this case is all about."

Dyer attorney Richard F. James, representing Morgano, also hammered at Leone, saying, "The evidence is going to show you the government in action - purchasing testimony."

Valparaiso attorney Robert Truitt, representing Glorioso, admitted his client is a gambler, but said he wasn't part of any "enterprise or group," an apparent reference to the crime syndicate.

Crown Point attorney John M. McGrath, representing Petros, called his client a "small, Greek gentlemen," in an effort to separate him from the other five defendants who are of Italian descent. He said Petros did favors for people but "never took a dime."

Gary attorney Scott King, representing Nuzzo, said, "Don't let them make my client, Sam Nuzzo, who is a gambler, out to be something he isn't or hasn't been." While King acknowledged his client's gambling, he said he isn't part of the crime syndicate.

King, in an effort to distance Nuzzo from the syndicate, said, "My client is the only one without a nickname."

Reginald Kinkade, who operated Variety Amusement Co. of East Chicago, is expected to testify today. Kinkade was convicted a year ago of paying kickbacks to protect his video poker machines. He was sentenced to 20 years in prison but now is cooperating with the government.

Kinkade is expected to testify he paid Petros $2,500 a month in "street tax" on his video poker machines from 1984 to 1986.

07241991 - News Article - 'Outfit' trial opens on differing note

'Outfit' trial opens on differing note
NWI Times
Jul 24, 1991
nwitimes.com/uncategorized/outfit-trial-opens-on-differing-note/article_0e96b642-58e4-5012-b1f6-7e0c2bc3a37e.html
HAMMOND - The Chicago "Outfit" sowed fear throughout Northwest Indiana during the past decade, shaking down gambling operators for a slice of the lucrative and illegal business, Assistant U.S. Attorney Michael Thill said Tuesday.

Gambling operators and local businessmen feared for their lives, for the lives of their families and for their businesses if they didn't pay the protection money demanded by the organized crime network, said Thill, who outlined how the six men standing trial in U.S. District Court in Hammond allegedly extorted money for the "Outfit."

The first witnesses in what is expected to be a six- to eight-week trial will be called this morning. Among the first to take the witness stand will be two alleged victims of the shakedowns, Reginald Kinkade and Timothy Janowsky, both owners of local vending machine companies that provided poker and other gambling machines for local taverns.

Kinkade, convicted of gambling and conspiracy earlier this year for paying bribes to public officials to protect his video poker operation, owned Variety Amusement in East Chicago. Janowsky, an FBI informant, was the owner of Geno's Vending in Merrillville and has testified against Kinkade and others.

Defense lawyers for the six defendants, who include Dominick "Tootsie" Palermo, 73, the reputed boss of the group's Chicago South Side territory, cautioned the jury about believing all the evidence the government intends to introduce, which includes about 150 witnesses, several hours of tape recordings and hundreds of surveillance pictures.

The lawyers told the jury that many of the taped recorded conversations are inaudible and have been misinterpreted by the government. They also attacked the credibility of one of the government's chief witnesses, Anthony Leone, once a defendant in the case now a cooperating witness who could cut his prison time by testifying.

Facing charges of gambling, racketeering and extortion are Palermo, his alleged lieutenant, Nicholas "Jumbo" Guzzino of Chicago Heights; Bernard "Snooky" Morgano of Valparaiso, the alleged boss of Northwest Indiana; Sam Nuzzo Jr. of Merrillville, who allegedly controlled much of Lake County's illegal gambling; and Peter "Cadillac Pete" Petros of Chicago and Sam "Frog" Glorioso of Gary, who both allegedly collected protection money for the "Outfit."

Palermo's lawyer, Kevin Milner, told the jury there is no evidence to suggest that Palermo is anything more than a hardworking unionist who likes to fish and cook. "Not one person is going to say to you that Palermo ever extorted a penny," he said.

The lawyers for both Palermo and Guzzino stressed that as field representatives for International Laborers Local 5, the two men collect money from union members and businesses as part of their jobs.

Palermo, a lifelong friend of Guzzino's father, would meet with the younger Guzzino frequently.

Glorioso, Petros and Nuzzo are all gamblers, said their lawyers, but nothing more. Petros was described by his lawyer as a "small, elderly Greek gentleman" who did favors for many people. Glorioso was characterized as "not a very good gambler" who had accumulated huge gambling debts.

One of the government's main witnesses against the six men is Leone, who will testify to meetings with many of the defendants to discuss the collection of the so-called street tax, Thill said.

Leone was convicted on racketeering, conspiracy and gambling charges in connection with running an illegal lottery in East Chicago and Gary. He served less than three years in prison and was paroled in June. In exchange for his testimony in this case, Leone faces for the latest charges a maximum of four years.

A former steelworker, Leone began working for the "Outfit" in 1985, Thill said. Leone, who initially received $1,000 a month and later less money, would collect the street tax and deliver the money to Morgano, he said.

Evidence will be presented from wiretaps placed on the phones of Morgano and Leone and a bug placed in the Taste of Italy Restaurant in Calumet City, a frequent meeting place of Guzzino, Morgano and Palermo. The restaurant, which is closed during lunch, when the defendants often met, is owned by Guzzino's brother Dominick.

07231991 - News Article - Organized crime trial starts today

Organized crime trial starts today
NWI Times
Jul 23, 1991
nwitimes.com/uncategorized/organized-crime-trial-starts-today/article_172e3868-5e83-58a4-b416-3bd63f19aaa9.html
HAMMOND - Opening arguments will be heard this morning in what has been hailed by the government as the largest organized crime case to go to trial in northern Indiana.

U.S. District Court Judge James T. Moody polled more than 100 potential jurors Monday in choosing a panel for the trial.

The trial may provide a revealing look at the financial network of the reputed Chicago "Outfit" crime family's South Side operation. The source of the money allegedly is illegal gambling and the so-called street tax paid to protect the illicit ventures in Lake County. The six defendants face charges of gambling, racketeering and extortion.

Some of those payoffs went to the sheriff of Lake County, according to Anthony Leone, a defendant who has pleaded guilty and will testify against his six co-defendants. Court documents do not name the sheriff.

Facing trial is the reputed head of the Chicago South Side operation, Dominick Palermo, 72, of Orland Park, and his alleged lieutenant, Nicholas Albert Guzzino, 49, of Chicago Heights.

Four other defendants allegedly among the upper ranks are also on trial: Bernard "Snooky" Morgano of Valparaiso, the reputed Northwest Indiana boss; Sam Nuzzo Jr. of Merrillville, who allegedly controlled much of Lake County's gambling; Peter "Cadillac Pete" Petros of Chicago, the alleged bagman; and Sam "Frog" Glorioso of Gary.

The six were indicted in December with nine others. Six have pleaded guilty and two others, Ned and Yolande Pujo of Portage, face a separate trial on gambling charges this fall.

One defendant, Steve Sfouris, who was charged with running an illegal Greek dice game know as barbut, is still a fugitive and is believed to have escaped to his native Greece.

Defendants Leone and Anthony "Potatoes" Ottomanelli have traded chairs in the courtroom and will testify for the government.

Four members of the Nuzzo family will avoid a trial after pleading guilty last week: Sam Nuzzo Sr., his son Arthur Nuzzo and his two daughters, Jennifer Kaufman and Sandra Mynes, all of Merrillville.

The 31-count indictment, which stems from an eight-year investigation, charges Palermo and his organization with extorting protection money from other illegal gambling businesses. According to the indictment, businesses and their owners were threatened if they refused to pay.

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, federal officials said.

Palermo's position in the reputed crime family reportedly was elevated with the arrest and conviction last year of the Chicago Heights mob boss Albert Tocco, who is serving a 200-year prison term.

07231991 - News Article - Attorney make opening bids - Syndicate gambling trial begins today

Attorney make opening bids 
Syndicate gambling trial begins today
Post-Tribune (IN)
July 23, 1991
infoweb.newsbank.com.proxy.portagelibrary.info/resources/doc/nb/news/10852CE3829AB904?p=AWNB
The poker hands were running hot in the hallway outside U.S. District Judge James T. Moody's courtroom Monday afternoon.

First a straight. Then three queens. Just 30 cents per play with a cup of coffee thrown in.

The vending machine coffee in the federal building comes in paper cups with playing cards printed on the side with a hole card on the bottom. The cup warns, "For consumer amusement only."

What will unfold over the next eight to 10 weeks in Moody's courtroom won't be for amusement. But there will be lots of talk about poker, barbotte, illegal lotteries, video poker machines, parlay cards, horse racing and sports betting.

It's the biggest crime syndicate trial ever in Northwest Indiana. There are six defendants, all allegedly involved in gambling operations or the collection of a "street tax."

Out of a panel of 100, a 12-member jury and five alternates were seated Monday. It took all day and into the evening.

The defendants are Dominick "Tootsie" Palermo, 72, of Orland Park, Ill.; Nicholas "Nicky" Guzzino, 49, of Chicago Heights, Ill.; Bernard "Snooky" Morgano, 54, of Valparaiso; Sam "Frog" Glorioso, 48, of Gary; Peter ''Cadillac Pete" Petros, 56, formerly of Gary, now of Cicero, Ill.; and Sam Nuzzo Jr., 45, of Merrillville.

Opening statements by Assistant U.S. Attorney Michael A. Thill and six defense attorneys begin this morning.

It's one of those trials from which movies are made.

* There are more than 200 hours of tape recordings.

* Many of the recordings were obtained through a "bug" the federal authorities placed in the Taste of Italy restaurant at 159th Street and Burnham Avenue in Calumet City, Ill. It is owned by the Guzzino family.

* Two of the 15 named in the original indictment - Anthony Leone and Anthony Ottomanelli - have pleaded guilty and will testify for the government.

* Five other defendants, all lesser players, have pleaded guilty.

The trial is the culmination of an eight-year investigation by the FBI, the Indiana State Police and the U.S. attorney's office.

Four the defendants - Palermo, Guzzino, Petros and Nuzzo - are in custody and will be brought to the courtroom from the Metropolitan Correctional Center in Chicago.

They will change from their blue prison jumpsuits into suits, shirts and ties upon arrival at the federal building here each morning.

While Thill will be assisted by Assistant U.S. Attorney Philip Simon, the defense table is loaded with veteran defense attorneys.

Chicago attorney Kevin Milner, a former assistant U.S. attorney here, and an associate, are representing Palermo and Guzzino. Gary attorney Scott King represents Nuzzo, with Crown Point attorney John McGrath representing Petros, Dyer attorney Richard F. James representing Morgano and Valparaiso attorney Robert Truitt representing Glorioso.

Palermo is the reputed mob boss for gambling operations in Northwest Indiana and Chicago's south suburbs. Guzzino is his top lieutenant.

Morgano is the alleged head of operations in Northwest Indiana. Nuzzo allegedly heads the sports betting operations in Lake and Porter County.

Petros and Glorioso are alleged associates of Nuzzo and collectors of the protection money that eventually wound up with Palermo and those above him in the crime syndicate.

07211991 - News Article - Money, not honor, drove "goodfellas"

Money, not honor, drove "goodfellas"
NWI Times
Jul 21, 1991
http://www.nwitimes.com/uncategorized/money-not-honor-drove-goodfellas/article_a509c7d6-9cd8-5aba-9db9-bce27760ced6.html
HAMMOND - They fancied themselves Lake County's goodfellas, the wise guys of Northwest Indiana.

There was no family honor, no blood oaths in secret ceremonies. Money was everything. Payoffs went all the way to the top of local law enforcement, to the sheriff of Lake County, one defendant-turned-witness will testify.

Having a bad week? Too bad. Pay me. Your place got hit by lightning? Too bad. Pay me. Fall behind, refuse to pay? We have people "who can handle anything."

That's what the government hopes to prove Monday as the biggest mob trial ever in Northwest Indiana gets under way in federal court.

In December, 15 people were indicted in Hammond in connection with the Chicago crime syndicate's operations in Northwest Indiana.

Six of the top echelon go to trial this week. Six others have already pleaded guilty. Another defendant is believed to have fled the country and two more will go on trial in October.

Monday, the alleged leader of south suburban and Northwest Indiana mob operations, Dominick "Tootsie" Palermo, of Orland Park, Ill., will go on trial for racketeering, conspiracy and gambling along with several other reputed top mobsters.

Included among those are Nicholas Guzzino, Palermo's lieutenant; Bernard "Snooky" Morgano, of Valparaiso, the Northwest Indiana boss; Sam Nuzzo Jr., of Merrillville, the man who the FBI says controls 80 percent of Lake County's illicit gambling; reputed bagman and extortionist Peter "Cadillac Pete" Petros of Cicero, Ill., and Sam "Frog" Glorioso, of Gary.

Defendant Steve "Bozo" Sfouris, of Munster, allegedly fled the country and is a federal fugitive. He is believed to have returned to his native Greece.

Ned and Yolande Pujo, of Portage, are scheduled to go on trial Oct. 7. They run the Beer Barrel Tavern and Restaurant on U.S. 30 in unincorporated Ross Township, where large scale parley card betting reportedly took place under Nuzzo's direction.

Nuzzo's father, Sam Nuzzo Sr., his brother, Arthur Nuzzo, his two sisters, Jennifer Kaufman and Sandra Mynes, and Anthony "Potatoes" Ottomanelli pleaded guilty Tuesday. Ottomanelli will be a government witness. They face a maximum of five years in prison and a $250,000 fine.

Leone, already in prison on racketeering, conspiracy and gambling convictions, pleaded guilty to gambling, conspiracy and extortion charges and will testify as a government witness.

Among the testimony expected from Leone, laid out in a document filed in federal court, is that the sheriff of Lake County was "getting paid protection money" by the Outfit. Leone will testify he was told that by the Outfit boss of Northwest Indiana, Snooky Morgano, sometime in 1987.

Although the "sheriff of Lake County" is nowhere identified by name in the document, current Sheriff Stephen R. Stiglich was in office then, and had been since late 1985.

Stiglich has said, through spokesman Ronald Rybarczyk, "I am not going to dignify that allegation with a comment."

Leone also alleges that he and Morgano met in June 1987 with "the sheriff" and James A. "Sonny" Peterson, East Chicago's gambling kingpin.

Other allegations detailed in the 13-page document include:
* Testimony from Edward Strawmeier that Cadillac Pete Petros approached him in 1984 about cornering the market on video poker machines in the Michigan City-LaPorte area.

* Petros, a collector of "street tax," or extortion money paid by syndicate gamblers, is also suspected in the firebombings of gambling lounges in South Bend and Elkhart in the early 1980s.

* Arnold "Jew Arnie" Bard of Munster and owner of an auto parts store in Hobart will testify how he helped set up illegal gambling games with Sam Nuzzo Jr. at two Greek coffee houses on 45th Avenue in Gary in 1987 and 1988.

Bard, a local gambling figure, will also tell about playing barbooth, a fast-paced Greek dice game, at games run by Sfouris in Hammond and East Chicago.

* John "Mustache John" Mantis will testify how he ran gambling games out of coffee houses in East Chicago and was supposed to meet with Nicky Guzzino and a man known only as "Gino" at an East Chicago restaurant to discuss the payment of "insurance" for Mantis to continue his games.

When Mantis failed to show for the meeting, Guzzino and Gino showed up at his restaurant, and Guzzino allegedly told Mantis "he would tear his eyeballs out and nail them to the wall" if he did not buy the insurance. Mantis told them he was already paying, and refused to pay more. The two threatened the card dealers, who quit - putting Mantis out of business.

Mantis is also expected to tell how he gave Sfouris, his boss, a ride to the former Pepper Pot Pizza to pay protection money to the "Old Man." This reference is to Frank Nick Zizzo, the one-time boss of Lake County gambling, who died in spring 1986.

* Mob figure turned informant Ken "Tokyo Joe" Eto will testify Chicago mob boss Joseph Ferriola told him in 1980 not to take any more bets in Northwest Indiana, but that Zizzo would take all the "street tax" and that Guzzino was his bagman.

* Evidence is also expected that federal witness Daniel MacKinnon, subpoenaed to testify before a grand jury on April 22, 1988, was approached by the Pujos and told to say he remembered nothing.

Just before the grand jury date, two men walked up to MacKinnon in the Denny's restaurant in Merrillville, called out his name and said "if he opened his mouth he would be dead." A similar incident happened on May 19, 1988, the day before MacKinnon's second grand jury appearance, as he left a grocery store at 53rd Avenue and Broadway in Merrillville and was approached by a man who threatened him if he said anything.

* Jeff Dunk is expected to testify that Petros approached him in 1980 or 1981 and offered to put a video poker machine in his business, to which Dunk agreed and split the payoffs down the middle with Petros. In 1986, Dunk is expected to say, Petros told him he "had people who could handle anything" if he needed it.

The government also plans to call Anthony Rovy and Betty Tocco to testify.

Rovy, a self-proclaimed career criminal and a reputed mob enforcer, pleaded guilty in September to helping the late Sam Mann distribute cocaine and marijuana in Calumet City and several other south suburbs from 1981 to 1987.

Betty Tocco is expected to testify her former husband, imprisoned mob boss Albert "Caesar" Tocco, asked her to send a message to Palermo and Guzzino.

Tocco, confined to the Metropolitan Correction Center, allegedly wanted the two men to arrange for a witness against him to have a heart attack.

Guzzino's alleged reply to the message was "You know there is a lot of things going on. We are going to be in the same position as Albert."

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

Guzzino was identified in the memo as the one who dug the grave.

07211991 - News Article - Crime syndicate trial to begin - Six linked with illegal gambling racket

Crime syndicate trial to begin 
Six linked with illegal gambling racket
Post-Tribune (IN)
July 21, 1991
infoweb.newsbank.com.proxy.portagelibrary.info/resources/doc/nb/news/10852CE0C5787EE6?p=AWNB
Six reputed gamblers and members of the crime syndicate go on trial in Hammond Monday on charges they operated illegal gambling businesses and extorted a "street tax" from several others.

The six, headed by reputed crime boss Dominick "Tootsie" Palermo, were among 15 named in a 29-count indictment returned by a federal grand jury in December.

The FBI, with the assistance of the Indiana State Police, conducted an eight-year investigation that included 300 hours of electronic surveillance, several raids and hundreds of interviews.

The case, which will be prosecuted by Assistant U.S. Attorney Michael A. Thill, is expected to last at least eight weeks. The trial is in U.S. District Judge James T. Moody's courtroom.

Many of the recordings were collected at the Taste of Italy restaurant in Calumet City, Ill., where federal authorities planted a recording device. The restaurant is owned by Nicholas "Nicky" Guzzino, 49, of Chicago Heights, Ill. Guzzino, reputed to be Palermo's top assistant, is also on trial.

James G. Richmond, the U.S. attorney at the time of the indictment, said, ''Without a doubt, it is the most significant organized crime indictment ever returned in the Northern District of Indiana."

Wayne Alford, special agent in charge of the FBI in Indiana, said at the same time that the street tax, or protection money, is a major source of income for the crime syndicate.

The illegal gambling involved a lottery, video poker machines, horse racing, sports betting, which included football and basketball parlay cards, and barbotte, a high-stakes Greek dice game.

Federal authorities recently estimated that gambling produces more than $25 million annually in Northwest Indiana for the crime syndicate.

Besides Palermo and Guzzino, those going on trial are Bernard "Snooky" Morgano, 54, of Valparaiso; Sam Nuzzo Jr., 45, of Merrillville; Peter ''Cadillac Pete" Petros, 56, formerly of Gary and LaPorte, now of Cicero, Ill.; and Sam "Frog" Glorioso, 48, of Gary.

Each of the six is charged with racketeering and racketeering conspiracy. Additionally, Guzzino is charged with one count of extortion, Morgano three counts of extortion, Glorioso five counts of extortion, Petros four counts of extortion and Nuzzo two counts of extortion.

Palermo is the reputed head of the crime syndicate's gambling operations for Chicago's south suburbs and Northwest Indiana.

Two key government witnesses are expected to be Reginald Kinkade, owner of Variety Amusement Co. of East Chicago, and Anthony Leone, of Valparaiso, who is serving an eight-year sentence for running an illegal lottery in Gary.

Kinkade was sentenced to 20 years in 1990 for paying kickbacks to protect his video poker machines.

Leone was among the 15 named in the December indictment.

Several of the others under indictment pleaded guilty last week to illegal gambling. They are Sam Nuzzo Sr., his son, Arthur Nuzzo, and his two daughters, Jennifer Kaufman and Sandra Mynes, all of Merrillville, and Anthony J. "Potatoes" Ottomanelli, of Portage. Of those who have pleaded, just Ottomanelli is cooperating with authorities.

Steve Sfouris, 55, of Munster, a longtime area barbotte operator, fled to his native Greece.

Ned and Yolande Pujo of Portage face illegal gambling charges. Ned Pujo, according to comments during a pre-trial hearing last week, is expected to plead guilty. Yolande Pujo will be tried at a later date.

07171991 - News Article - Five plead guilty to running sports betting operation

Five plead guilty to running sports betting operation
Post-Tribune (IN)
July 17, 1991
http://infoweb.newsbank.com.proxy.portagelibrary.info/resources/doc/nb/news/10852CDBB993873F?p=AWNB
Four members of a Merrillville family admitted Tuesday to running a sports betting operation in the town for nearly five years.

"I'm going to plead guilty, sir. I know I done wrong," Sam Nuzzo Sr. told U.S. District Judge James T. Moody.

The slightly built 70-year-old man had sat quietly in the courtroom as three of his children each pleaded guilty to a charge of conducting and aiding and abetting an illegal gambling operation.

The U.S. attorney's office accused Nuzzo Sr., his daughters Sandra T. Mynes, Jennifer J. Kaufman, and son Arthur A. Nuzzo along with Anthony ''Potatoes" Ottomanelli and Ned M. Pujo with running two gambling operations between January 1983 and November 1987.

Ottomanelli also entered a guilty plea. The 61-year-old man is from Portage.

The Nuzzos and Ottomanelli were among 15 alleged gamblers and members of a crime syndicate indicted by a federal grand jury last December on racketeering and illegal gambling charges.

If the pleas are accepted by Moody, each family member and Ottomanelli face a maximum of five years in prison and a $250,000 fine.

According to the terms of the plea agreements, the four Nuzzos won't be required to testify against Sam Nuzzo Jr. or Ned and Yolanda Pujo. Their trial on gambling charges is slated to begin Monday. Ottomanelli, however, will be a government witness in the case.

Assistant U.S. Attorney Michael Thill told the court one of the gambling operations focused on football parlay or "betting" cards, while the other accepted bets on individual sporting events.

Thill said that Pujo, who has pleaded not guilty, ran a card operation out of the Beer Barrel Tavern in Merrillville, and the Nuzzo family operated the other. Ottomanelli admitted assisting the Nuzzos.

According to the government, Ottomanelli, under instructions from Arthur or Sam Sr., contacted a printer in LaPorte on Tuesdays and gave the printer the point spreads of upcoming games. Ottomanelli would later pick up the cards and deliver them to either Arthur or Sam Sr.

The college and professional football games scheduled for the following weekend would be printed on the cards along with an assigned point spread. To win, a bettor had to pick a particular number of games and win all of them.

Thill said Arthur, Sam Sr. and Ottomanelli would pass the cards along to ''distributors" who would in turn pass them out to friends and co-workers who wanted to place bets.

Thill added that some of the more than 20 distributors would turn in as much as $2,000 a week in wagers. Distributors were paid 25 percent of the total money they collected, Thill said.

Along with parlay operation, the Nuzzos also admitted that they accepted individual bets on sporting events.

The primary focus of the operation was professional football and basketball, college football and basketball, as well as horse racing.

Sandra Mynes and Jennifer Kaufman answered two telephone lines that bettors were given by Arthur, Sam Jr. or Sam Nuzzo Sr.

The sisters would tell bettors whether they owed money from previous bets, or had won cash. They would then give bettors the point spreads for the games bettors were interested in betting on.

If a bettor lost, he would pay the Nuzzos the amount wagered along with an additional 10 percent, known as "juice."

Both Mynes and Kaufman admitted their roles in the telephone operation. Arthur Nuzzo told the court he distributed the parlay cards.

Sam Nuzzo Sr. said profits from the operations were divided between himself and his children.

Nuzzo Sr. and Ottomanelli were allowed to remain free on bond. The Nuzzo children were returned to the Metropolitan Correctional Center in Chicago where they have been detained since May when U.S. Magistrate Andrew P. Rodovich revoked their bonds.

Rodovich revoked their bonds after the government presented evidence they continued accepting bets even after the December indictment.

07161991 - News Article - Leone talks of 'Sheriff', hints Stiglich in on gambling

Leone talks of 'Sheriff', hints Stiglich in on gambling
Post-Tribune (IN)
July 16, 1991
http://infoweb.newsbank.com.proxy.portagelibrary.info/resources/doc/nb/news/10852CDAC9A67A7D?p=AWNB
Government witness and convicted gambler Anthony Leone will testify that Northwest Indiana gambling boss Bernard "Snooky" Morgano told him that the sheriff of Lake County was getting paid protection money.

Leone, 49, of rural Porter Township, will also testify that Morgano and local gambling figure James "Sonny" Peterson met with the sheriff in June 1987, according to pre-trial documents filed Friday.

The 13-page federal document was filed in connection with the upcoming crime syndicate "street tax" trial slated to begin next week in U.S District Court.

The documents do not identify the sheriff, nor the go-between who allegedly paid the protection money.

Current Lake County Sheriff Stephen Stiglich was in office in 1987. He replaced former Sheriff Rudy Bartolomei, who was convicted in 1985 of extortion and possession of an illegal handgun silencer.

Stiglich did not return Post-Tribune phone calls seeking comment. But through department spokesman Ron Rybarczyk, Stiglich said: "I will not dignify that with a response."

Assistant U.S. Attorney Michael A. Thill, who is prosecuting the case, said he could not comment on the documents or trial.

The documents lay out a portion of the government's case in the trial against Dominick "Tootsie" Palermo, 72, of Orland Park, Ill., reputed to head the crime syndicate's gambling operations in Chicago's south suburbs and Northwest Indiana.

Joining Palermo on trial Monday for conspiracy and extortion are Morgano, 54, of Valparaiso; Nicholas Guzzino, 49, of Chicago Heights, Ill.; Sam Nuzzo Jr., 45, of Merrillville; Sam "Frog" Glorioso, 48, of Gary; and Peter ''Cadillac Pete" Petros, 56, of Cicero, Ill. (formerly of LaPorte). Steve Sfouris, 55, of Munster, also charged in the indictments, has fled the country and is hiding in Greece, according to federal sources.

Sam Nuzzo Sr., 69, - the father of Sam Nuzzo Jr. and another son on trial, Arthur Nuzzo, 33, both of Merrillville - is expected to plead guilty today to gambling charges with his two daughters, Sandra Mynes, 43, and Jennifer Kaufman, 37, also of Merrillville.

The Nuzzo family allegedly heads the sports betting operation in Northwest Indiana. Anthony "Potatoes" Ottomanelli, 60, of Portage is also expected to plead guilty today to gambling charges.

The gambling trial of Yolande Pujo, 55, of Portage has been continued. Her husband, Ned Pujo, 51, is expected to enter a guilty plea, according to testimony during a pre-trial hearing Monday.

Leone has entered a guilty plea on gambling, conspiracy and extortion charges.

The case centers on a "street tax," a form of protection money sometimes called "insurance," extorted from local gamblers by crime syndicate bosses. The trial climaxes an eight-year investigation.

Sam Nuzzo Jr., Palermo, Guzzino and Petros are currently held at the Metropolitan Correctional Center in Chicago.

Testimony, according to court documents, could include:

A threat by reputed gambler Nicholas "Nicky" Guzzino to tear the eyeballs out of local coffee shop owner John Mantis in 1988 and nail them to the wall.

Threats against Daniel MacKinnon, who was subpoenaed to testify before a federal grand jury in Hammond in April 1988. The document reveals that two men allegedly approached MacKinnon at the Denny's in Merrillville, called him by name and said "if he opened his mouth, he would be dead."

Allegations that Gary police were asked to protect syndicate gambling operations and raid those not paying a street tax.

An admission by Leone that he attempted to manufacture a silencer for a .22 caliber gun. Morgano allegedly owned one as well.

The names of numerous establishments fronting gambling operations, including the Chateau Lounge in New Chicago, Snuzzo's Bar on 45th St., Gary, and a Greek coffeehouse behind Slick's Cleaners on 53rd Ave., Gary. Morgano and Sam Nuzzo Jr. allegedly held gambling parties at Mr. G's Restaurant in the Lakes of the Four Seasons.

Extortion in the video poker business. Gus Iatrides is expected to testify that in the early '80s he placed video poker games in his bar, Cassidy's. Later Petros told him that "he brought orders from the big boys and ... would have to pay $50 per machine per month to continue running the poker machines."

Leone is cooperating with the government and will testify against his former colleagues about corruption, gambling and extortion. He was convicted of operating an illegal lottery in Northwest Indiana.

At the time charges were released in December 1990, federal authorities said it was the most significant indictment ever in Northwest Indiana involving the crime syndicate and gambling.

The defendants are charged with extorting a "street tax" on local gambling operations, including ethnic games like bolita and barbotte, blackjack, video poker machines, sports betting and illegal lotteries.

Several prominent witnesses will testify. Ken Eto, the syndicate gambling figure who survived an assassination attempt and three bullets in the head by his Mafia bosses, turned on them and was accepted into the federal witness protection program. Eto will testify that Guzzino was the "pick-up man" who delivered gambling proceeds to the then-gambling chief, the late Frank Zizzo.

Betty Tocco, the wife of imprisoned syndicate hood Albert Tocco, will testify that her husband asked her to relay a message to Palermo and Guzzino that "it would be nice if Mr. (Herb) Panice (a witness against him in a 1989 trial) would have a heart attack."

Local gamblers will testify that Petros, Guzzino, Palermo and others threatened them and extorted thousands of dollars of "protection money" from them for allowing gambling operations to continue.