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
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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.