'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.
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