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
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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.

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