6 Convicted In Indiana Mob Scam
Chicago Tribune
August 17, 1991
articles.chicagotribune.com/1991-08-17/news/9103010085_1_racketeering-guilty-verdicts-convicted"_racketeering-guilty-verdicts-convicted
The reputed head of organized crime immediately south of Chicago, his underboss, and four other mob figures, were convicted Friday of federal racketeering charges arising from a scheme to extort protection money from gamblers in northwest Indiana.
The guilty verdicts by a federal court jury were handed up to Judge James Moody following a 3 1/2-week trial that provided, through secret recordings, a rare listen and look at the inside workings of a crime family.
``The guilty verdicts are a substantial impact on organized crime as it exists today in northwest Indiana,`` said John Hoehner, the U.S. attorney in Hammond. ``I`m elated.``
Among those convicted was Dominick Palermo, 73, of Orland Park, successor in the mob to imprisoned rackets boss Albert Tocco, according to federal authorities.
Like the others, Palermo was convicted of conspiracy and racketeering and faces up to 70 years in prison and a $2 million fine.
Also convicted was Nick Guzzino, 50, of Chicago Heights, identified by the FBI as Palermo`s underboss and who, like Palermo, was employed as a field representative of the Laborers International Union.
The others convicted were Peter Petros, 57, of Cicero; Bernard Morgano, 54, of Valparaiso; Sam Glorioso, 48, of Gary; and Sam Nuzzo Jr., 33, of Merrillville.
Moody ordered Morgano and Glorioso jailed after the verdicts were returned. The other men have been in custody since their arrest in December by the FBI.
All were convicted of conspiracy to commit racketeering acts over a five- year period, ending in 1988.
Prosecution evidence in the case, presented by Assistant U.S. Attorney Michael Thill, included the testimony of a convicted mobster, Anthony Leone, and the playing of 200 taped conversations. Many of the tapes were made at the Taste of Italy restaurant in Calumet City, and others were the fruit of telephone wiretaps.
The recordings were obtained by the FBI through hidden microphones, two of which were in the Taste of Italy, near a booth favored by Palermo and Guzzino.
The two FBI agents who developed evidence in the case, James Cziperle and Robert Hadrick, testified that Palermo and the others met regularly at the Calumet City restaurant at times when it was not open to the public, primarily to count extortion money. The hidden microphones picked up the rustle of money being counted and whispered references to the payment of bribes.
In one tape played to show Palermo`s and Guzzino`s command of the extortion racket, Morgano was overheard telling a confederate, ``OK. But we are going to have to check it out with Chicago first.``
Eleven acknowledged victims of the shakedown racket testified that they paid rather than risk harm to themselves, their families, or their businesses. Some said they were bookmakers, and others identified themselves as vendors of gambling paraphernalia to taverns in Lake and La Porte Counties.
Moody set sentencing for all six for Oct. 15.
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