Court hears tapes in gambling trial
Post-Tribune (IN)
August 1, 1991
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Reputed members of the crime syndicate showed fear and anger in February 1986 when they learned that then-Lake County Sheriff Rudy Bartolomei had begun cooperating with federal authorities, launching the Operation Lights Out investigation into public corruption.
That was the indication on tape recordings obtained through a government bug placed in the Taste of Italy restaurant at Burnham Avenue and River Oaks Drive in Calumet City, Ill., in 1986.
Bartolomei entered the federal witness protection program when he began cooperating.
The tape recordings are key to the government's case against six alleged gamblers and members of the crime syndicate charged in connection with the extortion of a street tax from high-stakes gambling operations in Northwest Indiana. Several of the tapes were played in U.S. District Court Wednesday.
Nicholas "Jumbo" Guzzino, 49, whose brother, Dominick, owns the Taste of Italy, is heard speaking with Albert J. Roviaro, who operates Swanel Beverage Dispensers of Hammond and has ties to Guzzino, on a recording made Feb. 27, 1986. Guzzino is one of the six defendants. Roviaro isn't accused of wrongdoing.
After Roviaro told him Bartolomei got a 28-month sentence, Guzzino said, ''And Rudy thought he had a deal for six months, I heard. By the time he is out ... "
Dominick "Tootsie" Palermo, 73, the reputed syndicate boss for Northwest Indiana and Chicago's south suburbs and one of the defendants, said, "He's gonna start ... he's got one federal grand jury, and gonna go start another one, the son of a -----."
Guzzino responded, "All them guys'll, well, all be gone. When they get done over there, they'll have 80 percent of them politicians'll be out."
Five days later, Bernard "Snooky" Morgano, 54, of Valparaiso, showed up at the restaurant around noon. Morgano is the alleged street boss for gambling operations in Northwest Indiana and a defendant.
"They got the G (government) all over the street, everywhere, everywhere, everywhere, so it's real hot over there," Morgano said.
"Yeah, well I know," Guzzino said.
"That's what I'm coming to tell you," Morgano said. "I ain't gonna do nothin' except take it easy and relax. You know, I made sure I wasn't followed here with that ... the old man's stuff, his, uh, jewelry and everything, I got that, and his check.
"See, they got everybody locked up man. The ------- G grabbin' records and everything else. The only way they ain't goin', is they ain't gone to, uh, uh, (then-Gary Mayor Richard) Hatcher," Morgano said.
On March 12, 1986, at the restaurant Guzzino and Morgano were discussing the death of Frank Zizzo, the former street boss for Northwest Indiana.
Morgano said, "We should get ahold of all the guys from Gary. Tell 'em to pay their respects, like Sam Nuzzo, Jungle Jim (Tonevich)."
Morgano then began discussing Sam Nuzzo, although there is no indication whether it is Sam Sr. or Sam Jr. The younger Nuzzo is the alleged head of sports betting in Northwest Indiana and one of the defendants. His father pleaded guilty to illegal gambling and faces up to five years in prison.
"Whatta you get from him," said Guzzino, referring to Nuzzo. "Whatta you got from him."
"I get 25 percent," Morgano said. "Twenty-five percent outta, right off the top. Every time I come."
The FBI watched the restaurant around the noon hour most weekdays from January through June 1986. The restaurant is open to the public only in the evenings. Palermo, Nicholas Guzzino and Morgano were frequent visitors.
FBI special agent Robert Hadrick was one of those who observed who entered and left.
On Feb. 19 and Feb. 25, Hadrick said he saw former Hammond Democratic Chairman William Olsen enter the restaurant. Hadrick said Olsen pulled up in a pickup truck registered to Lake County government. Olsen was county fairgrounds superintendent at the time. Olsen isn't charged.
Olsen was ordered to jail two years ago when he was granted immunity and still refused to testify before a federal grand jury. He was held for more than a month then released because of poor health.
The other defendants are Sam "Frog" Glorioso, 48, of Gary, and Peter ''Cadillac Pete" Petros, 56, of Cicero, Ill., formerly of LaPorte.
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