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.

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