Restaurateur, tobacco shop owner testify of shakedowns for street tax
NWI Times
Jul 30, 1991
nwitimes.com/uncategorized/restaurateur-tobacco-shop-owner-testify-of-shakedowns-for/article_28f4d443-e4dc-51b8-98a5-2462d44ea5a1.html
HAMMOND - Local restaurateur Louis Gerodemos testified Monday that he did not think it was right or fair that he pay for the privilege of holding a few gambling parties in 1987.
Bookmaker and tobacco shop owner Jeffrey Dunk said when he was approached in 1986 about paying a "street tax" to protect his illegal gambling operation in LaPorte, he "thought it was crazy."
Both men testified under a grant of immunity, reluctantly answering questions about their own illegal activities and how and who demanded a slice of the action. Gerodemos was told several times to speak louder during his testimony, and Dunk sat silent several minutes before responding to questions.
Together, they fingered Bernard "Snooky" Morgano, Nicholas Guzzino, Sam Nuzzo Jr. and Anthony Leone as being involved in the some of the shakedowns. But defense lawyers challenged much of what they said, getting them to admit they were not really frightened of these men, as they had told the government, and challenging their memories.
The government is trying to tie Guzzino, Morgano, Nuzzo and three other defendants together, alleging that they conspired to extort for the Chicago "Outfit" thousands of dollars from local businessmen and gamblers.
The six, including Dominick "Tootsie" Palermo, 73, the reputed boss of the group's Chicago South Side territory; Peter "Cadillac Pete" Petros of Chicago; and Sam "Frog" Glorioso of Gary, face charges of gambling, racketeering and extortion.
Also Monday, retired Gary police Officer Mike Mione said he spent two years in a federal prison for paying Gary police Officer Willie Ray Turley $500 in 1983 to raid three illegal gambling houses in the city.
Mione said Anthony Leone asked him to bribe the officer so Leone could "shake them (the gambling houses) down for money after they were raided."
Leone was charged in the same conspiracy with the other six defendants, but he has pleaded guilty and will testify against his co-defendants.
Gerodemos said he was first approached about paying protection money in 1987, when Morgano demanded $500 if any gambling was to be held at an upcoming Super Bowl party Gerodemos planned in the basement of his Lake of the Four Seasons restaurant, Mr. G's.
Gambling - poker, blackjack and barbooth - was the featured entertainment at the party, and three others, including a surprise birthday party for Gerodemos; a retirement party for his friend Steve Jandura, a former Lake County police officer; and one for the benefit of a local union.
The union's party was raided by police, putting an end to the parties and putting a gambling conviction on Gerodemos' record.
After Jandura's party, Morgano repeated his demand for money, raising the cut to $1,000, Gerodemos said. Each time, Gerodemos said he was told by Arnie Bard, the man who ran the illegal games at the parties, that Bard had met the demands.
Gerodemos testified that he did not know if Bard ever paid Morgano.
On one occasion after Jandura's party, Gerodemos said, Morgano and Guzzino visited Mr. G's. But Gerodemos' recollection of the meeting was hazy, and he had to rely on his written grand jury statement to answer the government's questions about it.
Gerodemos said Guzzino did not say much, but "Snooky was their man for whatever takes place in Indiana," and "Let's stay friends." After the meeting, Gerodemos said he received a call from Nuzzo, who asked if anybody had talked to him and how much money was demanded.
Under questioning by the government, Gerodemos said he found the meeting with Guzzino and Morgano upsetting.
"I felt very intimidated and afraid just over the fact that Guzzino accompanied Morgano," Gerodemos said, "since I know Guzzino was connected to the 'Outfit.' "
But under questioning by the defense, he later said he wasn't scared of the men.
Dunk, a LaPorte businessman, also admitted he was not afraid of Leone, the man who demanded money from him.
Dunk said he was introduced to Leone by Petros, who often bragged of his big connections. Dunk said he did not believe "Cadillac Pete," who he understood came by his nickname as a joke about the car he once owned.
Pete only brought Leone to the shop and did not participate in any of the meetings where paying a "street tax" was discussed, Dunk said.
Admitting to running illegal gambling for the last 20 years from his Ye Old Pipe Shoppe, Dunk said Leone originally demanded $500 a month but after some negotiation, accepted $400.
"Tony said everyone had been awfully lucky there hadn't been a street tax paid and basically there should be," he said.
Dunk admitted he has made hundreds of thousands of dollars from the illegal gambling operation he still directs out of his tobacco shop.
He said he stopped paying payments in 1987, when Leone did not come by his business anymore.
"Have you every heard of a one-man Mafia?" said defense lawyer Ronald Menaker, who represents Guzzino. "Didn't it seem odd that after Mr. Leone stopped coming around and nobody else was sent to collect?"
"I was just glad nobody came around," Dunk said.
Menaker asked Dunk if the only "man who ever bothered you" was sitting in the courtroom.
"No," Dunk said.
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