Defense hurries to get prepared in 'Outfit' trial
NWI Times
Aug 13, 1991
nwitimes.com/uncategorized/defense-hurries-to-get-prepared-in-outfit-trial/article_47adfa5d-42eb-5625-932e-de1d7d06c3e1.html
HAMMOND - The prosecution's quick wrap-up of its case against Bernard "Snooky" Morgano and five other reputed mobsters Monday left the defense scrambling to get its witnesses together.
Most of Monday's testimony was taken up by Anthony Leone, who described himself as Morgano's "right-hand man." Being tried on federal racketeering and gambling charges with Morgano are Dominick "Tootsie" Palermo, Nicholas "Nicky" Guzzino, Peter "Cadillac Pete" Petros, Sam "Frog" Glorioso and Sam Nuzzo Jr.
Lawyers originally had estimated the trial would take six to eight weeks, but it is entering its fourth week, and both Richard James, lawyer for Morgano, and Ronald Menaker, Guzzino's lawyer, said they were having trouble contacting witnesses for today. U.S. District Court Judge James Moody said he would not delay the trial for a witness.
During five hours on the witness stand, Leone told of first turning down Morgano's request to "run some errands," but after being laid off from USX Gary Works, he accepted a second offer because he needed the money. He said he has known Morgano since high school and worked part-time making pizzas at Pete and Snook's restaurant, owned by Morgano during the mid 1970s.
Leone said he understood the "errands" to mean he would pick up the "street tax," payments from operators of illegal gambling operations in exchange for protection. He turned down the first offer because he didn't want to disgrace his family, but then set up an illegal lottery game with a co-worker because he thought it was a "minor thing" under Indiana law, he said.
Leone and Al Watkins used Morgano's restaurant to count the money from their lottery. They paid Morgano the 15 percent street tax and another share to Frank Zizzo, who owned the building and who Morgano said was in charge of gambling in Northwest Indiana and Northeast Illinois "for the syndicate," Leone said.
Although the lottery was grossing about $5,000 a week, Leone said he got out because it wasn't making any money and he wasn't able to pay off a $10,000 loan he got from a friend to operate the business. He began working as a collector for Morgano, replacing Petros, at a pay of $1,000 a month, he said.
Morgano disliked Petros and wanted to get rid of him, Leone said. Leone collected from several gambling operations in LaPorte, Michigan City, New Chicago and Gary. The monthly payments ranged from $200 to $500, and he took all the money to Morgano, either at his home or some other location.
When Zizzo died in 1986, Leone said his monthly pay dropped to about $500 and sometimes he wasn't paid at all. He said Morgano told him the money came "from those people across the line." Leone said didn't know who "those people" were, but whenever he accompanied Morgano to the Taste of Italy Restaurant in Calumet City, he saw Guzzino, Palermo and Zizzo, before his death.
Morgano had a heart attack while in Leone's car, and Morgano's wife told Leone to call Guzzino to take over. Leone said he continued to visit with Morgano daily in the hospital to talk about collections and considered himself Morgano's right-hand man.
After Zizzo's death, Morgano instructed Leone to try to collect a higher street tax from each of the operators. When each refused or said he couldn't afford it, Leone said Morgano agreed to continue the previous rates.
Leone said he shot out the windows in Frank Burton's front door when Burton refused to pay the street tax. He said Morgano drove him to Burton's and he used his own .22-caliber pistol with a pipe attached to the barrel as a silencer. Leone later cut up the pipe with a torch and scattered the tiny pieces along Interstate 65.
Defense lawyers attacked Leone's credibility, pointing out several times that he failed to mention Morgano in his previous testimony to the grand jury and that his testimony changed after he was sent to prison. At that time he contacted federal agents about a deal to reduce his sentence.
Leone agreed that he didn't want to spend more time in prison, but said he didn't want to implicate Morgano at first. Monday, however, he said, "I didn't go anywhere or do anything unless I was told to by Mr. Morgano."
When Leone said he couldn't remember making certain statements to the grand jury or the federal agents, lawyer Scott King said, "Your recollection appears to be different when defense attorneys ask questions as opposed to when the government asks."
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