07311991 - News Article - Gambler, bookmakers testify of payments to alleged

Gambler, bookmakers testify of payments to alleged
NWI Times
Jul 31, 1991
nwitimes.com/uncategorized/gambler-bookmakers-testify-of-payments-to-alleged/article_5ddc51d0-e5de-5340-9315-c3f7a5dfaf9e.html
HAMMOND - An admitted compulsive gambler testified Tuesday that after he ran up a $20,000 debt with a local illegal sports betting operation, he was visited by two men who threatened him and his family.

Former Highland resident Robert Graczyk said he was visited by two men named "Bob" and "Bingo," who came to his home one evening in October 1988 to talk about the gambling debt, saying they "can't collect because Nuzzo said you haven't paid."

Graczyk said he told the men that he was trying to make good on the debt, but a heated exchange followed, and they grabbed and hit him, "but not hard enough where it hurt you."

The first gambler to testify that he had trouble settling a debt with the illegal sports betting operation run by members of the Nuzzo family in Merrillville, Graczyk admitted he stole money from his employers and his parents to cover losses totaling $80,000.

He said he still owes the Nuzzo operation $6,000. He also faces time in prison for theft, time that could be reduced by his testimony in this case.

Sam Nuzzo Jr. is one of six defendants on trial for running an illegal gambling operation, extortion and racketeering. As have many of the other witnesses who said they placed bets through the Nuzzo operation, Graczyk said he had no direct dealings with Sam Nuzzo Jr.

Nuzzo's sisters, Sandra Mynes and Jennifer Kaufman; brother, Arthur Nuzzo; and father, Sam Sr., were charged in the same indictment and have plead guilty to running an illegal gambling operation.

The government is trying to show that Sam Nuzzo Jr. conspired with his co-defendants to extort a "street tax" for the Chicago "Outfit," taking thousands of dollars from local businessmen and gambling operators.

His co-defendants are Dominick "Tootsie" Palermo, 73, the reputed boss of the Outfit's Chicago South Side territory; his alleged underboss, Nicholas Guzzino of Chicago Heights; Bernard "Snooky" Morgano; Peter "Cadillac Pete" Petros of Chicago; and Sam "Frog" Glorioso of Gary.

Athansios Gerodimos testified Morgano visited his Greek coffeehouse at 53rd and Broadway in Gary, where card games for money were played.

Testifying under a grant of immunity, Gerodimos said Morgano, whose real name and nickname he did not know until after talking with government investigators, asked how business was doing and said money would have to be paid.

Gerodimos said he told Morgano he did not have anything with which to pay and refused to do so. The coffeehouse was the subject of two Gary police raids, but Gerodimos could not remember if the raids came before or after the meeting with Morgano.

Two LaPorte County bookmakers testified Tuesday that they paid a "street tax" to a man named Tony. Anthony Leone, who was charged in the same indictment with the same crimes as the six men now on trial, has pleaded guilty and will testify for the government.

Both bookmakers said they are still running illegal gambling operations today, and because they testified under a grant of immunity, they do not expect to go to prison over their illicit ventures. They took bets on football, basketball, baseball and horses and offered video poker machines, punch boards and sports parley cards.

One of the bookmakers, Edward Strawmier, testified that in the eight years he and his uncle, Charles Kallil, conducted illegal gambling from their Michigan City cigar store, they netted more than $1.6 million, proceeds that in some years were split evenly between the two.

Strawmier testified that he paid Tony $500 a month during football season in 1986 and part of the 1987 season.

He said he met Tony at the parking lot in the Holiday Inn after receiving a call from Petros, who said "he had a deal for me.

Strawmier said he was curious about the deal and met Petros even though an earlier encounter with Petros had frightened the bookmaker so much that he started carrying a gun.

At the meeting with Tony, Strawmier said, Petros left after the introduction.

"Tony told me he wanted to continue the deal Pete had going," Strawmier said. "I asked him, 'What deal?' He said, 'You should talk to your uncle.' "

Tony said he wanted $500 a month, and Strawmier said he would have to talk with his uncle. He and his uncle later agreed to pay the money. The payments were made until Tony stopped coming around before the end of the 1987 football season.

In December 1988, Strawmier said he got a call from someone who said he was calling for Tony and that the rent was due. Strawmier said he hung up on the caller and never paid any more money.