Ex-sheriff, Mafia named at trial
Tapes portray payoffs and street taxes
NWI Times
Aug 9, 1991
nwitimes.com/uncategorized/ex-sheriff-mafia-named-at-trial-tapes-portray-payoffs-and/article_ad8d409a-4f5d-56de-8cbe-83a3f3f4130c.html
HAMMOND - Convicted Gary gambling figure Al Watkins told a federal jury Thursday how reputed mobster Bernard "Snooky" Morgano regularly collected 15 percent "street tax" off the top of Watkins' illegal numbers operation.
Morgano, 54, of rural Valparaiso is on trial along with five other reputed associates of the Chicago "Outfit" crime syndicate. All are charged with federal gambling and racketeering violations.
Anthony Leone, who has pleaded guilty to gambling charges, is expected to testify Monday, when the government hopes to wrap up the prosecution portion of the trial, which then will be entering its fourth week.
Watkins also told the jury how he witnessed payoffs to the Lake County sheriff by Leone, who is Morgano's nephew, and saw Leone take target practice in the back room of his uncle's Hobart restaurant with a silenced pistol.
Watkins identified the owner of the restaurant - not by name - as the "big man in the county" with organized crime, which Watkins called "the Mafia."
In a conversation with undercover Gary police Lt. Fred Bemish, who was posing as a cop on the take from gamblers, Watkins said, "I've seen him (Leone) make payoffs to the county. To, to the (expletive) sheriff."
"To the sheriff himself?" Bemish asks, and Watkins responds, "That's right.
I told you, this ... is not small." Later, Watkins says, "I know for a fact he's paying the sheriff, 'cause I seen it."
The conversation between Bemish and Watkins, which was tape recorded by Bemish and played for the jury Thursday, was made July 18, 1985. At the time, Rudy Bartolomei was sheriff. That year, he resigned after his conviction on federal extortion and weapons charges. He is now in the federal witness protection program.
Watkins told Assistant U.S. Attorney Philip Simon he and Leone began running an illegal lottery game using the Illinois Lottery as a guide when both were working at the U.S. Steel Gary Works in 1982. Shortly thereafter, both were laid off and began concentrating efforts on the lottery.
Leone borrowed $10,000 from a co-worker and Watkins recruited workers to take bets and run them back to the counting house, which he said was at Morgano's restaurant on Ridge Road in Hobart.
When the money came in, as much as $800 a day, the three would split it up, Watkins said, with 15 percent going off the top to Morgano for use of the counting house and 15 going to pay the "street tax" to the mob for permission to operate.
Out of the remainder, 15 percent went to repay Leone's loan and 10 percent went to pay off Gary police, Watkins said. The final 45 percent was split between Leone and Watkins after the winners were paid.
When Bemish suggested to Watkins that he might put pressure on Leone, who had dumped Watkins out of the operation by 1985, to do business with Gary police, Watkins said Bemish might be biting off more than he was bargaining for.
"Man, don't you know Leone and them, ah, kill your ass?" Watkins asks Bemish. Later, he says, "Leone works for the big man that, ah, has control of the county."
"With the Mafia, you mean?" asks Bemish. "That's right ... I don't want no part of Leone. Leone is Mafia. I just told you that."
Bemish asks Watkins if he has mentioned Bemish to Leone. "No, why, am I crazy? Do I look crazy to you?" Watkins replies. "I'm trying to be honest with you, but I don't wanna get killed out here for no (expletive) $300 a week.
"I've seen things I'm not gonna tell you, but I've seen payoffs," Watkins says. "I've seen a whole bunch, that I know Leone is with the Mafia, and no doubt in my mind about that. But these guys don't play. They'll (expletive) you up. So if you're trying to make a buck, fine. But I wouldn't (expletive) with them. I wouldn't even (expletive) with them. Go get these other (expletive) around here."
Morgano's lawyer, Richard James, said although Leone may have bragged of organized crime connections, it was no more than brag and had no connection with his client.
Willie Ray Turley, a former Gary police officer now working in Indianapolis, testified he worked undercover with Bemish and was contacted numerous times by Leone - whom he knew as "John" - in an effort to get competing gambling operators shut down with police raids.
Turley, also posing as a cop on the take, made numerous recordings of conversations with Leone during which Leone agreed to pay police for raiding certain gambling dens in Gary's Glen Park neighborhood.
One of those gamblers, Franklin Burton, testified Wednesday he was arrested at his bookmaking operation at 16 E. 39th Ave. after he refused to pay "street tax" and was subjected to threatening phone calls and bullets through his window.
In another conversation with Turley, Leone says he wants to open a gambling operation in Glen Park, and Turley tells him the vice squad is cracking down on prostitution in the area.
"We don't mess with that," Leone replied. "The only thing we're interested in is a little gambling. Prostitution, dope and everything, you know, we stay 20 miles away from that. That's not our bag."
Another witness, convicted gambler John "Mustache John" Mantis, told how he paid $400 a month "street tax" to another defendant, Sam "Frog" Glorioso, in exchange for running a Greek coffee house at 113 State St., Hammond.
The coffee house was also home to a number of card games, some of which were illegal. "I got a call, I don't know who's calling," Mantis said. "He said I'd better pay some money, $400 a month, and he'd send a guy to collect it. A big guy named Sam, Sam came in and I gave him the money."
"Who did you understand Sam to represent?" asked Assistant U.S. Attorney Michael Thill. "I don't know, protection from police, from Mafia. I don't know who he give the money to."
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