Tape of bugging
Pledged 'street tax' trial opens
Post-Tribune (IN)
July 24, 1991
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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.
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