08031991 - News Article - Video poker issue on tapes - Focus is on Morgano

Video poker issue on tapes 
Focus is on Morgano
Post-Tribune (IN)
August 3, 1991
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An FBI agent testified Friday that Bernard "Snooky" Morgano told him a week before his trial began that "you play with fire, you get burned."

Special Agent James Cziperle said he and Morgano walked together from the parking lot into the federal courthouse on the morning of a pretrial conference.

After exchanging good mornings, Cziperle said Morgano told him, "I'll be glad when this ... is over. You play with fire you, get burned."

Morgano, 54, of Valparaiso, is one of six alleged gamblers and members of the crime syndicate being tried on racketeering and illegal gambling charges. The trial focuses on the crime syndicate's collection of a street tax on a variety of gambling operations in Northwest Indiana.

Much of the focus Friday - the end of the second week - was on Morgano.

Following Cziperle's brief testimony, Assistant U.S. Attorney Michael A. Thill used the day to play 76 tape recordings obtained through taps on the telephones of Morgano and Anthony Leone, who also was charged but has pleaded guilty and will testify for the government. There are about 130 more tapes.

Beginning in January 1987, the FBI tapped Morgano's telephone and stalked him as he moved about Northwest Indiana and Chicago's south suburbs.

While gambling and the collection of money is the focus of most of the conversations, there's no talk about putting pressure on those who may be behind in payments.

But the speakers, including Morgano, were careful not to use names or at least complete names.

In one instance, Leone said, "Yeah, I got (an) appointment."

"Oh, good, when?" Morgano asked.

"Well, I don't wanna say over the phone," Leone said.

On another tape, Leone said, "I gotta call that guy."

Morgano responded, "Yeah, you go to a pay phone when you call."

"Uh, the fat man," Leone said.

"Yeah," Morgano said.

Most of the telephone conversations are used to set up lunch time meetings between Morgano, Leone, Sam "Frog" Glorioso, Nicholas "Jumbo" Guzzino, Frank Travline and Arnie Bard, poker dealers, and others. Glorioso and Guzzino are defendants as well.

Many of the meetings were held over coffee at the Paragon Restaurant in Hobart. Louis Gerodemos, a longtime area gambler and restaurant operator, owns the Paragon.

There also were several meetings at Hobart Gyros at Interstate 65 and Ridge Road and at HyDad's, a Merrillville tavern owned by Sam Nuzzo Jr., another of the defendants.

Morgano was tailed several times to the Duchess, a strip joint at Interstate 94 and Cline Avenue that is owned by Steve Sfouris, who fled to his native Greece just before the indictment was returned. Sfouris operated barbotte , a high-stakes Greek dice game, for more than 30 years here.

There is just one specific reference to the crime syndicate, which also is known as the Outfit.

Bard, while on the telephone with Morgano, said, "I know he's ... I'm, I'm OK with the guy. He was working for the Outfit ... office."

"Oh, I didn't know that," Morgano said.

"Yeah, he was taking the action," Bard said.

On March 11, 1987, the day of a newspaper report that a judge had declared video poker machines to be illegal, per se, Leone and Morgano were on the telephone.

"I just wondered, did you see today's paper," Leone said. "About the machines."

"No, what about 'em?" Morgano said.

"Illegal," Leone said.

"Well, that takes care of that," Morgano said matter-of-factly.

Reginald Kinkade, the owner of Variety Amusement Co. of East Chicago, testified earlier that he paid $2,500 a month to stay in the video poker machine business.

Kinkade said he paid Peter "Cadillac Pete" Petros, who allegedly was collecting for the crime syndicate and is one of the defendants.

The other defendant is Dominick "Tootsie" Palermo, 73, of Orland Park, Ill., the alleged head of gambling operations for the crime syndicate in Northwest Indiana and Chicago's south suburbs.