05031992 - News Article - Nuzzo gets 11 years in gambling conviction



Nuzzo gets 11 years in gambling conviction
Times Staff Report
May 3, 1992
nwitimes.com/uncategorized/nuzzo-gets-years-in-gambling-conviction/article_5d48c85b-2e06-55ec-9c10-79c92153c62b.html
HAMMOND - Northwest Indiana sports gambling chieftain Sam Nuzzo Jr. was sentenced to 11 years in prison Friday by U.S. District Judge James T. Moody. He was also fined $60,000.

Nuzzo, 46, owner of Hydad's restaurant and lounge, 31 W. 80th Place in Merrillville, was among 15 people, including four members of his family, indicted in 1990 for gambling, racketeering and extortion. The indictment was hailed as the largest organized crime case ever handled by the U.S. attorney's office for the northern district of Indiana.

A Merrillville resident, Nuzzo was imprisoned within months of the indictment after federal prosecutors learned he was continuing his sports betting operation. The time he spent in custody will be subtracted from his sentence.

Nuzzo was convicted by a Hammond federal jury in August, along with five others, of running an illegal gambling business, extortion, racketeering and conspiracy. During the sentencing Friday, Moody ruled Nuzzo was an operator and supervisor of the betting operation.

Shortly before their case was scheduled to go to trial last July, the four other members of Nuzzo's family pleaded guilty to running an illegal gambling business. They include Sam Nuzzo Sr.; his two daughters, Jennifer Kaufman and Sandra Mynes, and his son, Arthur.

Others indicted with the Nuzzo family included the alleged South Side boss of the Chicago "Outfit" crime family, Dominick Palermo and his aide, Nicholas Guzzino.

The charges leveled by a federal grand jury in 1990 resulted from an eight-year investigation by state and federal agencies.

The 31-count indictment involves charges of racketeering, illegal sports betting, high-stakes gambling and extorting protection money - called a "street tax" - from various Lake County businesses.

05021992 - News Article - Nuzzo Jr. receives 11-year sentence



Nuzzo Jr. receives 11-year sentence
Post-Tribune (IN)
May 2, 1992
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HAMMOND - Sam Nuzzo Jr., who ran the largest sports betting operation in Northwest Indiana, was sentenced Friday to 11 years in prison and fined $60,000.

Nuzzo, 46, of Merrillville, was among 15 gamblers and members of the crime syndicate indicted in December 1990 following an eight-year FBI investigation into mob activity in Northwest Indiana. Nuzzo owns Hydad's Lounge, 31 W. 80th Place, Merrillville.

U.S. District Judge James T. Moody sentenced Nuzzo to 71 months under the new federal guidelines and five years under the old formula. The sentences are to run consecutively. Nuzzo, who was convicted of racketeering and illegal gambling, will have to serve almost seven years of the sentence.

The amount of potential time Nuzzo faced under the new guidelines was increased by 20 months Friday when Moody ruled that Nuzzo was considered an operator and supervisor.

05021992 - News Article - Gambler gets 11-year term



Gambler gets 11-year term
Post-Tribune (IN)
May 2, 1992
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Sam Nuzzo Jr., who ran the largest sports betting operation in Northwest Indiana, was sentenced Friday to 11 years in prison and fined $60,000.

Nuzzo, 46, of Merrillville, was among 15 gamblers and members of the crime syndicate indicted in December 1990 following an eight-year FBI investigation into mob activity in Northwest Indiana. Nuzzo owns Hydad's lounge, 31 W. 80th Place, Merrillville.

U.S. District Judge James T. Moody sentenced Nuzzo to 71 months under the new federal guidelines and five years under the old formula. The sentences are to run consecutively. Nuzzo, who was convicted of racketeering and illegal gambling, will have to serve almost seven years of the sentence.

The amount of potential time Nuzzo faced under the new guidelines was increased by 20 months Friday when Moody ruled that Nuzzo was considered an operator and supervisor.

Nuzzo will be credited with almost one year served. He was imprisoned a few months after being indicted when it was learned he was continuing to operate his sports betting business.

Assistant U.S. Attorney Michael A. Thill asked for a substantial period of incarceration. FBI Special Agents James Cziperle and Robert Hadrick headed the investigation. Nuzzo declined comment before sentencing. His attorney, Scott L. King, asked for leniency, saying his client wasn't as culpable as the other defendants.

Besides being a high-stakes gambler himself, Nuzzo and some of his family members profited from the lucrative sports betting operation that ran on athletic events, particularly football, basketball and horse racing, according to evidence during his trial.

Several of those who placed bets with Nuzzo testified during the August 1991 trial.

Nuzzo was tried with Dominick "Tootsie" Palermo, 73, the head of the crime syndicate's operations in Northwest Indiana and Chicago's south suburbs, and four others. Palermo will have to serve at least 14 years in prison. Nuzzo paid a "street tax" to Palermo.

Four other members of Nuzzo's family pleaded guilty to being part of the sports betting operation. His brother Arthur Nuzzo and father Sam Nuzzo Sr. are serving 18-month sentences. His sisters, Jennifer Kaufman and Sandra T. Mynes, recently were released from prison after serving one-year terms.

04261992 - News Article - Three mobsters given prison sentences



Three mobsters given prison sentences
Times Staff Report
Apr 26, 1992
nwitimes.com/uncategorized/three-mobsters-given-prison-sentences/article_accad78f-bb47-5ab8-8c27-09f32fa7f816.html
HAMMOND - The largest investigation ever into area mob activity has resulted in three more men being sentenced to federal prison.

Sam M. "Frog" Glorioso, 50, of Gary; Peter "Cadillac Pete" Petros, 57, of Cicero; and Ned M. Pujo, 52, of Portage were all sentenced Friday in federal court by U.S. District Judge James T. Moody.

Glorioso, who had collected the mob's "street tax," received an 11-year sentence. He was found guilty of one count of racketeering, one count of racketeering conspiracy, five counts of extortion and one count of participating in an illegal gambling business.

Petros, a former Gary resident who collected extortion money for the crime syndicate, was sentenced to nine years and nine months. He was found guilty of one count of racketeering, one count of racketeering conspiracy and four counts of extortion.

Pujo, a gambling boss and owner of the Beer Barrel Restaurant and lounge in Merrillville, was sentenced to 18 months in prison and fined $30,000. He had pleaded guilty to illegal gambling charges.

The men were among those indicted in late 1990 during a federal investigation into a gambling and extortion racket run for the Chicago "Outfit" organized crime family, which controlled gambling in the south suburbs and Northwest Indiana.

04251992 - News Article - Gamblers receive prison terms



Gamblers receive prison terms
Post-Tribune (IN)
April 25, 1992
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Three longtime area gamblers with ties to the crime syndicate, including a Ross Township tavern owner, were sentenced to prison Friday.

The three were among 15 defendants indicted in late 1990 as a result of the most massive investigation into the crime syndicate even in Northwest Indiana. Two of the three were convicted in August 1991. The third pleaded guilty.

U.S. District Judge James T. Moody sentenced Ned M. Pujo, 52, of Portage; Sam "Frog" Glorioso, 50, of Gary, and Peter "Cadillac Pete" Petros, 57, formerly of Gary.

Glorioso was sentenced for crimes committed before and after new federal sentencing guidelines took affect Nov. 1, 1987. He will have to serve more than six years of a sentence of about 11 years.

Glorioso was imprisoned upon conviction but was freed because of family medical problems. He must report to prison June 1.

Glorioso is a longtime area gambler and one of those who collected a street tax on gambling operations for the crime syndicate. He was a U.S. Steel employee at the time of his indictment.

Pujo, the owner of the Beer Barrel Restaurant and Lounge, 4717 E. Lincoln Highway, Ross Township, will have to serve about 15 months of his 18-month sentence under the new federal guidelines. He also was fined $30,000. Pujo ran a football and basketball parlay card operation.

Pujo pleaded to illegal gambling charges. In exchange for his plea, the U.S. attorney's office dismissed gambling charges against his wife, Yolande Pujo, 56. Pujo reports to prison June 1.

Petros was given about 10 years under the combined guidelines and will have to serve almost six years. He too is a longtime gambler and collector for the crime syndicate.

Assistant U.S. Attorney Michael A. Thill asked Moody to impose substantial sentences. FBI special agents James Cziperle and Robert Hadrick headed the eight-year investigation.

Pujo and Glorioso said they were sorry for what they had done. Petros didn't address the court prior to sentencing.

The sentencing of Sam Nuzzo Jr., 46, of Merrillville, was continued until May 1. His sentencing was delayed when Moody questioned whether Nuzzo's culpability could be increased because he was considered a manager or organizer. Gary attorney Scott L. King, representing Nuzzo, said he wasn't prepared to argue that point Friday.

Nuzzo ran the area's largest sports betting operation. His father, Sam Nuzzo Sr.; his brother, Arthur Nuzzo, and his sisters, Sandra Mynes and Jennifer Kaufman, previously were sentenced to a year in prison for their roles in the betting operation.

Sentences
Sam Glorioso of Gary - 11 years
Ned M. Pugo of Portage - 18 months, $30,000 fine
Peter Petros, formerly of Gary - 10 years

04251992 - News Article - 2 Mob Underlings Get 10-year Prison Terms



2 Mob Underlings Get 10-year Prison Terms
Chicago Tribune
April 25, 1992
articles.chicagotribune.com/1992-04-25/news/9202060760_1_prison-sentences-district-judge-james-moody-mob"_prison-sentences-district-judge-james-moody-mob
Peter Petros was not a man to take no for an answer. Nor was Sam Glorioso, according to the FBI and trial testimony.

Together, they were collectors for a crew of mobsters immediately southeast of Chicago, and a visit from either one was itself an unspoken message: Pay a street tax or risk the consequences.

On Friday, Petros, 58, of Cicero, and Glorioso, 49, of Gary, convicted underlings of imprisoned Chicago Heights mob boss Dominick Palermo, received a message of their own from a federal judge: prison sentences of up to 10 years.

Each had been convicted by a jury of multiple extortion counts involving shakedowns of bookmakers and distributors of coin-operated gambling devices.

In imposing sentence, U.S. District Judge James Moody in Hammond ruled that Petros and Glorioso had actively engaged in organized crime in northwest Indiana.

Petros, who insisted he was only ``doing favors for people,`` received a prison term of 9 years and 9 months. Evidence against him centered on threats to bomb or torch buildings in Lake County, Ind.

``He enjoyed being with the outfit,`` Assistant U.S. Atty. Michael Thill told Moody.

Glorioso, a veteran crane operater at a Gary steel mill, was sentenced to 10 years after apologizing for his crimes.

``I never intended to hurt anybody,`` he said. ``I am sorry for what I did, but I don`t think I am guilty of everything I did. I was stupid. My eyes are open now.``

Moody directed that Glorioso, whose wife and mother are seriously ill, remain with his family until he is to report to prison June 1.

A third defendant, Ned Pujo, 52, a gambling boss and operator of the Beer Barrel tavern in Merrillville, was sentenced to 18 months in prison. He was also fined $30,000 by Moody.

In addition to the testimony of victims of mob extortion, evidence in the case consisted of hundreds of hours of conversations recorded by the FBI at the Taste of Italy restaurant in Calumet City.

One bugging device, planted near a booth of the restaurant favored by Palermo, captured his voice on tape speaking of bribes to police.

Palermo was sentenced last month by Moody to 32 years behind bars and fined $250,000.

03271992 - News Article - Mobsters handed stiff terms



Mobsters handed stiff terms
NWI Times
Mar 27, 1992
nwitimes.com/uncategorized/mobsters-handed-stiff-terms/article_ee5d3b4a-32ad-5e56-8286-3e3d0d0cbe07.html
HAMMOND - Three mobsters who extorted thousands of dollars in protection money from illegal gambling operations in Northwest Indiana were sentenced Thursday to a combined 78 years in prison.

One of the three Chicago Outfit mobsters who extorted thousands of dollars in protection money from illegal gambling operations in Northwest Indiana: Dominick "Tootsie" Palermo, Nicholas "Nicky" Guzzino, Bernard "Snooky" Morgano

U.S. District Judge James T. Moody sentenced Dominick "Tootsie" Palermo, 74, of Orland Park, the territorial boss of the "Outfit" crime family, to 32 years and three months in prison. He was fined $125,000.

Nicholas "Nicky" Guzzino, 50, of Chicago Heights, Palermo's chief underboss, was sentenced to 39 years and six months in prison and fined $185,000.

Bernard "Snooky" Morgano, 55, of Valparaiso, a mid-level manger who oversaw street collections and bribing of police, was sentenced to 16 years and three months in prison and fined $177,000.

The three were convicted by a federal jury in August on 56 of 57 counts of racketeering, conspiracy and conducting an illegal gambling business.

The government charged they imposed a so-called street tax on every illegal gambling operation in Lake and Porter counties.

The lawyers for the trio tried to get Moody to lower the sentences to be nearly equal to the three years probation given Anthony Leone. Leone was the government's key witness and was described as everything from a liar to a snake during the sentencing hearing Thursday.

Assistant U.S. Attorney Michael Thill said the jury found the three guilty on all but one count largely based on Leone's testimony. Thill said Leone received leniency from the court because he cooperated with the government. Palermo's lawyer, Kevin Milner, said, "If there's a mob figure, it's Leone." Leone was Morgano's right-hand man and the collector of the street tax, he said.

Morgano, the only one of the three to address Moody, said, "The man is a snake. His own wife said he was lying.

"I don't asked for mercy," Morgano said, "I ask for justice."

Dick James, Guzzino's lawyer and a former federal prosecutor, called Leone an "unbelievable liar." He said a message is being sent: Go to the government, tell them what they want to hear and buy a certain amount of freedom. Ronald Menaker, Guzzino's lawyer, said extortion was a way of life for Leone. "Leone is a walking, talking symbol of corruption," he said.

Menaker said Guzzino was being punished for the people he associated with.

The only plea Moody honored was a request to send Morgano and Palermo to the federal minimum-security prison near Rochester, Minn., to receive medical attention. Moody noted that not once has the federal prison system followed his recommendation for placement.

Palermo has undergone three heart bypass operations, is missing 60 percent of his stomach, has emphysema and a number of other problems, Milner said.

"Mr. Palermo will never be out again," Milner said, "at least alive." He called the sentence "a death sentence."

Morgano was described as having serious heart damage, James said, and requested he be driven, not flown, to prison.

U.S. Attorney John Hoehner hailed the sentencing.

"Organized crime, in all its insidious forms, isn't welcome in the Northern District of Indiana," he said. "In handing down enormous penalties to Mr. Palermo, Mr. Guzzino and Mr. Morgano, Judge Moody has underscored this message."

Hoehner also credited the efforts of the FBI, the Indiana State Police and the Hammond police.

03271992 - News Article - 3 crime syndicate members receive hefty sentences - A former Valpo resident who cooperated with the government and was sentenced to probation is called "a snake" by one of the convicted



3 crime syndicate members receive hefty sentences
A former Valpo resident who cooperated with the government and was sentenced to probation is called "a snake" by one of the convicted
Post-Tribune (IN)
March 27, 1992
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After an eight-year investigation and four-week trial, it took U.S. District Judge James T. Moody less than two hours Thursday to sentence three members of the crime syndicate to hefty prison terms.

For Dominick "Tootsie" Palermo, 74, of Orland Park, Ill., it likely will be a life sentence. The head of the crime syndicate's operations in Northwest Indiana and Chicago's south suburbs is in poor health and likely will die in prison, said his attorney, Kevin Milner.

Also headed for long periods of incarceration are Nicholas "Jumbo" Guzzino, 50, of Chicago Heights, Ill., and Bernard "Snooky" Morgano, 54, of Valparaiso. Guzzino was Palermo's top lieutenant and Morgano answered to Guzzino.

The sentences, under both the new and old federal guidelines, will mean mandatory minimum sentences of at least 14 years for Palermo, 16 1/2 years for Guzzino and 16 years for Morgano, the government said.

Moody also fined Palermo $250,000, Guzzino $185,000 and Morgano $177,000. The defense attorneys said the convictions and sentences will be appealed.

Morgano was the only defendant to speak before sentencing. He directed his comments to Anthony Leone, the co-defendant who pleaded guilty, cooperated with the government and was sentenced to probation.

"The man is a snake," said Morgano, the former owner of Pete and Snook's bar and restaurant in Glen Park. "I have known him for 35 years and I've done nothing but help him. This man is lying. I don't ask for mercy your honor, I ask for justice."

Assistant U.S. Attorneys Michael A. Thill and Philip Simon prosecuted the case. FBI agents James Cziperle and J.J. Klaver were the case agents.

Thill, in asking for substantial sentences, said, "This case was but another example of how organized crime - through its control and payoffs of policemen and through its use of fear and threats - controls illegal activity; how they, the mob, the outfit, creates an enduring stream of illegality in the community."

Besides Leone, a former Valparaiso resident, several Northwest Indiana gamblers testified last August about how they were required to pay a street tax of up to 25 percent of their gambling profits.

Leone entered the federal witness protection program after agreeing to cooperate. He dropped out upon sentencing.

Defense attorneys hammered at the possibility of their clients receiving stiff sentences and Leone going virtually free.

"There is another message going out of this courtroom," said Dyer attorney Richard F. James, representing Morgano. "If you go to the government and tell the government what they believe to be true, you purchase a certain amount of consideration."

Attorney Ronald Menaker, representing Guzzino, sought leniency, saying, ''If there is a message to be sent, it's that people who come before the bar of justice in this district will be treated fairly."

Milner said government accusations the defendants are members of the crime syndicate are "ridiculous."

"It may sell newspapers and it may play well on TV, but it's not true," Milner said.

U.S. Attorney John F. Hoehner disagreed, saying after sentencing, ''Organized crime, in all its insidious forms, is not welcome in the Northern District of Indiana. In handing down enormous penalties to Mr. Palermo, Mr. Guzzino and Mr. Morgano, Judge Moody underscored this message."

Three other defendants - Sam Nuzzo Jr. of Merrillville, Sam "Frog" Glorioso of Gary and Peter "Cadillac Pete" Petros, formerly of Gary, will be sentenced next month on the same charges.

03271992 - News Article - Suburban Mob Boss Sentenced



Suburban Mob Boss Sentenced
Chicago Tribune
March 27, 1992
articles.chicagotribune.com/1992-03-27/news/9201280320_1_sentenced-mob-district-judge-james-moody"_sentenced-mob-district-judge-james-moody
Dominick Palermo, a veteran official of the Laborers International Union and reputed boss of organized crime in Chicago`s southern suburbs, was sentenced Thursday to 32 years and 3 months in prison for extorting protection money from bookmakers in northwest Indiana.

The 74-year-old Palermo, a former resident of Orland Park, also was fined $250,000 by U.S. District Judge James Moody in Hammond.

Walking with the aid of a cane, Palermo displayed no emotion as the sentence was read and he said nothing. He smiled to a crowd of about 50 friends and family members, kissed his wife, Betty, goodbye, and left the courtroom in the custody of U.S. marshals.

Defense attorney Kevin Milner predicted that Palmero will die in prison.

``Mr. Palermo is never going to be out again,`` Milner said. ``Not alive, anyway. Never a free man.``

Two other convicted mob figures also were sentenced to prison by Moody for their part in the shakedown scheme, the existence of which was documented by the FBI with the assistance of Hammond police detectives and the Indiana State Police.

Nick Guzzino, 50, of Chicago Heights, a mob underboss and Laborers Union field representative, was sentenced to 39 years and 6 months in prison and fined $185,000.

Bernard Morgano, 55, of Valparaiso, Ind., a nephew of deported gangster Gaitano Morgano, received a term of 16 years and 3 months behind bars, along with a $177,000 fine.

All three were convicted by a federal jury last August.

Only Morgano spoke in his own behalf Thursday, telling Moody that the chief witness against him and the others, turncoat mobster Tony Leone, gave perjured testimony to avoid prison.

``He is a snake,`` Morgano said of Leone. ``He lied on that stand.``

Then, in a reference to a request for leniency by his defense lawyer, Dick James, Morgano exclaimed, ``I do not ask for mercy. I ask for justice.``

Palermo and the others had been found guilty of using threats of bodily harm and arson to collect thousands of dollars in ``street taxes`` from bookmakers and vendors of gambling paraphernalia. Eleven victims testified that they paid rather than risk harm to themselves, their families or their businesses.

Assistant U.S. Atty. Michael Thill had asked Moody to impose substantial penalties as ``a message to underworld characters,`` and the judge complied. Moody said that in one instance, the mob sent its own message by shooting out the windows of a bookmaking business.

Thill`s boss, U.S. Atty. John Hoehner, said the sentences are the message that will be remembered.

``Organized crime in all insidious forms,`` Hoehner said, ``is not welcome in the Northern District of Indiana.``

Lawyers for Palermo and the others bitterly attacked Leone as a liar and the government for a ``double standard`` in not fully prosecuting Leone for his admitted crimes as a member of the Palermo-Guzzino street crew.

``Tony Leone is a walking, talking symbol of corruption,`` Guzzino`s lawyer, Ronald Menaker, said.

Prosecution evidence in the case, presented by Thill, went beyond Leone`s testimony to include the playing of 200 taped conversations. Many of the tapes were made secretly at the Taste of Italy restaurant in Calumet City.

On the tapes, Palermo and the others could be heard discussing the collection of street taxes and plans to bribe police officers in Indiana.

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.`` Thill said that was a reference to the Chicago mob and Palermo`s part in it.

02281992 - News Article - Syndicate sentencing delayed



Syndicate sentencing delayed
Post-Tribune (IN)
February 28, 1992
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The sentencing of six members of the crime syndicate has been continued for a third time because of a schedule conflict for the government attorney on the case.

U.S. District Judge James T. Moody rescheduled the sentencing for April 24. The six had been set for sentencing Thursday.

The defendants are Dominick "Tootsie" Palermo of Orland Park, Ill.; Nicholas "Jumbo" Guzzino of Chicago Heights, Ill.; Bernard "Snooky" Morgano of Valparaiso, Sam "Frog" Glorioso of Gary, Peter "Cadillac Pete" Petros, formerly of Gary and LaPorte, and Sam Nuzzo Jr. of Merrillville. All are being held at the Metropolitan Correctional Center in Chicago.

The six were convicted in August on racketeering and illegal gambling charges in connection with the collection of a "street tax" from illegal gambling operations in Northwest Indiana.

02041992 - News Article - New guidelines delay sentencing 3rd time



New guidelines delay sentencing 3rd time
Post-Tribune (IN)
February 4, 1992
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The sentencing of six members of the Northwest Indiana crime syndicate has been continued for a third time because of the complexity of new federal sentencing guidelines.

U.S. District Judge James T. Moody rescheduled the sentencings for Feb. 27. The six had been set for sentencing Friday.

The defendants are Dominick "Tootsie" Palermo of Orland Park, Ill.; Nicholas "Jumbo" Guzzino of Chicago Heights, Ill.; Bernard "Snooky" Morgano of Valparaiso; Sam "Frog" Glorioso of Gary; Peter "Cadillac Pete" Petros, formerly of Gary and LaPorte; and Sam Nuzzo Jr. of Merrillville.

The six were convicted in August on racketeering and illegal gambling charges in connection with the collection of a "street tax" from illegal gambling operations in Northwest Indiana. Each is being held pending sentencing.

One of the reasons for the continuances is the effort of Assistant U.S. Attorney Michael A. Thill to have Moody increase the maximum potential sentence each defendant faces.

Thill, in earlier hearings, argued that the new federal sentencing guidelines don't take into account crimes committed by members of the crime syndicate. The guidelines took affect Nov. 1, 1987.

Because of the complex nature of the guidelines and relative lack of legal precedent, Moody said he wanted to carefully weigh the arguments before making a decision.

Defendants serve about 85 percent of their sentences under the new guidelines. Under the old federal code, a defendant usually served about one- third of a sentence.

The potential sentences would increase by five years and as much as 15 years if Thill's motions are approved.

01101992 - News Article - Sentencing is delayed for study of guidelines



Sentencing is delayed for study of guidelines
Post-Tribune (IN)
January 10, 1992
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U.S. District Judge James T. Moody Thursday continued the sentencing of Sam Nuzzo Jr. and Peter "Cadillac Pete" Petros after hearing attorneys argue the application of new federal sentencing guidelines.

Moody, saying he wanted to study the guidelines, set sentencing for Jan. 29.

Nuzzo, 45, of Merrillville, and Petros, 56, formerly of Gary and LaPorte, were among six defendants convicted in August on racketeering and extortion charges in connection with the collection of a "street tax" from illegal gambling operations.

Assistant U.S. Attorney Michael A. Thill asked Moody to increase the offense level the two face because of their connection to the crime syndicate. If approved, it would increase their potential sentences by at least five years.

Petros is a longtime area gambler and street collector for the crime syndicate.

Nuzzo ran the sports betting operation in Northwest Indiana. Nuzzo's father, Sam Nuzzo Sr., and his brother, Arthur Nuzzo, and sisters, Jennifer Kaufman and Sandra Mynes, also were charged but pleaded guilty. Each was sentenced to a year in prison.

Moody earlier this week continued the sentencings of Dominick "Tootsie" Palermo, the leader of the syndicate's gambling operations in Northwest Indiana and south Chicago; Nicholas "Jumbo" Guzzino, Palermo's top lieutenant; Bernard "Snooky" Morgano, who headed gambling collections in Northwest Indiana, and Sam "Frog" Glorioso, a longtime gambler who took part in the collections.

01091992 - News Article - U.S. argues for tougher sentences in gambling case



U.S. argues for tougher sentences in gambling case
Post-Tribune (IN)
January 9, 1992
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U.S. District Judge James T. Moody heard oral arguments Wednesday and then continued the sentencings of Bernard "Snooky" Morgano and Sam "Frog" Glorioso until Jan. 29.

Morgano, 54, of Valparaiso, and Glorioso, 48, of Gary, were among six defendants convicted in August in connection with the crime syndicate's collection of a "street tax" on illegal gambling operations in Northwest Indiana.

At issue at the sentencing hearing Wednesday was Assistant U.S. Attorney Michael A. Thill's motions to increase the offense level under which each defendant will be sentenced.

If successful, Morgano's potential sentence would increase from about six years to about 21 years. Glorioso's potential sentence would increase from about five years to more than 11 years.

For Morgano, Thill is seeking two five-level increases. One is because of the use of a firearm by Anthony Leone, one of the original defendants who pleaded guilty and cooperated with the government. Thill contends Morgano was responsible for Leone's actions because Morgano was his boss.

Dyer attorney Richard F. James, representing Morgano, argued Wednesday that Leone's testimony can't be believed. Leone testified during trial that Morgano was with him in a car when he fired a shot through the window of Gary gambler Franklin Burton's bookstore.

For Morgano and Glorioso, Thill is seeking five-level increases because of the involvement of the crime syndicate.

James and Valparaiso attorney Robert Truitt, representing Glorioso, argued that the new federal sentencing guidelines already have taken into account what the appropriate sentence should be for crimes involving the crime syndicate.

Moody today is expected to hear similar arguments for defendants Sam Nuzzo Jr. of Merrillville and Peter "Cadillac Pete" Petros, formerly of Gary and LaPorte. Moody Tuesday heard arguments on defendants Dominick "Tootsie" Palermo of Orland Park, Ill., and Nicholas "Jumbo" Guzzino of Chicago Heights, Ill.

All six defendants are being held at the Metropolitan Correctional Center in Chicago.

01081992 - News Article - Alleged mob chief's sentencing delayed



Alleged mob chief's sentencing delayed
NWI Times
Jan 8, 1992
nwitimes.com/uncategorized/alleged-mob-chief-s-sentencing-delayed/article_749afd0e-3331-5b99-99d8-07847a576973.html
HAMMOND - The sentencing of reputed mob boss Dominick "Tootsie" Palermo and his top lieutenant for running a gambling empire in Northwest Indiana was put off Tuesday when a federal judge said he needed more time to determine the proper penalty.

U.S. District Court Judge James Moody said he wanted to consider arguments on the government's request that he impose a stiffer penalty than the maximum allowed under federal sentencing guidelines. Moody rescheduled sentencing for Palermo and Nicholas Guzzino to Jan. 24.

"I want to be very careful," Moody said.

Palermo, 73, of Orland Park and Guzzino, 50, of Chicago Heights were convicted in September along with four lesser members of the gambling ring on multiple counts of racketeering, conspiracy, gambling and extortion.

The organization ran its own betting operation and used threats of violence to collect protection money, or a "street tax," from the operators of other illegal gambling enterprises in the area.

The convictions culminated a seven-year federal probe of organized crime-controlled gambling in Northwest Indiana.

Assistant U.S. Attorney Michael Thill asked Moody Tuesday to impose a prison term longer than the guidelines because Palermo and Guzzino are organized crime members.

Thill said the Racketeer Influenced and Corrupt Organizations, or RICO, count that each was convicted of does not take mob ties into consideration when determining penalties.

But Kevin Milner, lawyer for Palermo, and Ronald Menaker, lawyer for Guzzino, dismissed Thill's contention as "ludicrous." They claimed that Congress enacted the RICO law specifically to combat organized crime.

"Arguing RICO and RICO guidelines do not contemplate organized crime is like saying Bobby Knight does not know a basketball from a tomato," said a document filed in the case by defense lawyers.

Milner and Menaker also objected to attempts by the government to tack on additional prison time for violations that occurred before the sentencing guidelines were established in 1987 and for the use of a weapon by an underling to collect a debt.

Palermo faces a total of 70 years in prison, while Guzzino could get up to 90 years.

Sentencing of the four underlings convicted with Palermo and Guzzino could be affected by the government's request that their prison terms also exceed the federal guidelines.

Bernard Morgano, 55, of Valparaiso and Sam Glorioso, 49, of Gary are scheduled to be sentenced by Moody today. Peter Petros, 57, of Cicero and Sam Nuzzo Jr., 46, of Merrillville are due in court Thursday for sentencing.

Eight others indicted in the gambling operation pleaded guilty before the trial and already have been sentenced. A 15th suspect allegedly fled to Greece and is a fugitive.

01081992 - News Article - Crime boss sentences could skyrocket - Guidelines affect Palermo, Guzzino



Crime boss sentences could skyrocket 
Guidelines affect Palermo, Guzzino
Post-Tribune (IN)
January 8, 1992
infoweb.newsbank.com.proxy.portagelibrary.info/resources/doc/nb/news/1084EDE2528C5C24?p=AWNB
Prosecution and defense attorneys Tuesday wrestled with the new federal sentencing guidelines and the level of culpability faced by two convicted members of the crime syndicate.

U.S. District Judge James T. Moody took the arguments under advisement and continued the sentencing of Dominick "Tootsie" Palermo, 73, of Orland Park, Ill., and Nicholas "Jumbo" Guzzino, 50, of Chicago Heights, Ill., until Jan. 24.

Because of the complex nature of the new guidelines and scant legal precedents, Moody said he wanted to carefully weigh the arguments before making a decision.

What the judge decides on two government motions will severely impact the amount of prison time the two face. Guzzino's potential sentence could increase from almost six years to almost 20 years. Palermo's potential sentence could increase from 6 1/2 years to almost 22 years. Under the sentencing guidelines, defendants serve about 85 percent of their terms.

Palermo, the syndicate boss for gambling operations in Northwest Indiana and Chicago's south suburbs, and Guzzino, his top lieutenant, were among six defendants convicted here in August on racketeering and illegal gambling charges.

Assistant U.S. Attorney Michael A. Thill wants one offense level increased by five points because a predicate act to the racketeering charge involved use of a firearm.

If that increase is granted it would add more than five years to Guzzino's potential sentence and about six years to Palermo's.

Thill also wants a five-level increase in potential sentence because the defendants are members of a crime syndicate.

Chicago attorneys Kevin Milner, representing Palermo, and Ronald Menaker, counsel for Guzzino, argued against the first increase, saying the gun was used by Anthony Leone, another defendant, not by their clients.

But Thill contends Palermo and Guzzino are culpable because they were Leone's bosses.

"It is reasonably foreseeable that the next step in the collection of a street tax is the use of a firearm or some type of weapon," Thill argued.

Milner argued that Palermo never concurred in the use of a weapon or had knowledge of its existence.

Leone used the weapon to shoot out the windows at Franklin Burton's illegal gambling operation in Gary. Burton was behind on payments, Leone testified.

Leone cooperated with the government and testified against his co- defendants. He was placed on probation and announced his intent to leave the federal witness protection program.

On the other offense, Thill argued that the guidelines of the racketeering statute don't take into account the defendants are members of a crime syndicate.

Milner and Menaker argued that the racketeering statute was designed for cases involving the crime syndicate and that there was no need to increase the offense levels to deal with those crimes.

"The sentencing commission knew full well (the racketeering statute) was designed to combat organized crime," Menaker said.

If Moody grants the both five-level increase because of the crime syndicate, Guzzino would face a maximum of almost 20 years and Palermo almost 22 years.

The other defendants, Bernard "Snooky" Morgano of Valparaiso, Sam ''Frog" Glorioso of Gary, Sam Nuzzo Jr. of Merrillville and Peter ''Cadillac Pete" Petros, formerly of Gary and LaPorte, are scheduled for sentencing today and Thursday.

01021992 - News Article - Mob weaker, but alive after convictions



Mob weaker, but alive after convictions
NWI Times
Jan 2, 1992
nwitimes.com/uncategorized/mob-weaker-but-alive-after-convictions/article_7838698c-0308-5fa4-83a1-efc83bbddf66.html
CHICAGO - The Chicago crime syndicate remains a viable force despite the fact that many of the mob's ranking bosses are either imprisoned or under indictment, local law enforcement officials concede.

"Just because many of the old-timers are being caught in their ways, so to speak, doesn't mean organized crime in Chicago has been deluded in any way," said Robert Fuesel, executive director of the Chicago Crime Commission. The minute one mob figure is out of the picture, another steps in to take his place, he said.

"We have a list of at least 454 people willing to be number one. There are always guys willing to take another person's place in the realm of organized crime," Fuesel said.

The younger mobsters, however, are less motivated by ethnic ties than by a desire to make money, he added. "Organized crime is alive and doing well." Although two of the Chicago Outfit's undisputed leaders, Joey "Doves" Aiuppa, 82, and Jackie "The Lackey" Cerone, 75, are serving lengthy prison sentences, government officials say the mob continues to profit in everything from gambling to prostitution.

"Gambling and street tax still fund all the mob's operations whether it's prostitution or 'juice loans,' " Fuesel said.

The so-called street tax is collected from independent bookmakers and illegal vice operators who want to operate in the mob's territory.

The mob also continues to provide hundreds of thousands of dollars a month in "juice loans" to down-and-out businessmen and gamblers at annual interest rates of up to 260 percent.

Government prosecutors contend that illegal gambling, street tax and "juice loans" netted reputed mob boss Ernest "Rocco" Infelise, 69, and associate Salvatore "Solly D." DeLaurentis, 53, nearly$4 million in the past decade.

Infelise, DeLaurentis and three others are on trial in U.S. District Court charged with overseeing a lucrative mob gambling business in the north and northwest suburbs that operated through "murder, extortion and violence."

Although indictments like those handed down against Infelise and his "crew" have had some impact on organized crime in Chicago, the syndicate lives on, according to an FBI official.

"I think a decade of indictments and convictions have hurt them. They're not dead, but they're certainly wounded," said Robert E. Walsh, assistant special agent in charge of the Chicago FBI office.

"The mob definitely is losing its influence, especially in the unions and the political arena," Walsh added.

A federal prosecutor said the recent indictments of alleged mob "political fixer" Gus "Slim" Alex, 75, and Chicago 1st Ward power broker Pat Marcy, 77, could do more to damage the mob than anything in recent years.

U.S. Attorney Fred Foreman, in announcing the indictments against Alex and other reputed mobsters, promised that the federal government would continue to target organized crime in the coming year.

He predicted that "1992 will be a Super Bowl year" in the government's effort against the mob.

Among the indictments expected later this year are those involving the "Big Seven" in Chicago organized crime, including reputed boss Sam "Wings" Carlisi.

Others reportedly targeted in the "Big Seven" probe are John "No Nose" DiFronzo, the mob's No. 2 man; Vincent "Innocence" Solano Sr.; Joseph "The Builder" Andriacci; James "Jimmy L" LaPietra; Dominick "Tootsie" Palermo; and James "Legs" D'Antonio.

Carlisi, apparently anticipating an indictment, has been in Florida since last February when he turned over day-to-day operations to DiFronzo, said Jerry Gladden, chief investigator with the Crime Commission.

"Carlisi's trying to stay cool, disposing of his money and trying to hide his assets" from the government, Gladden said.

Despite the rash of recent mob indictments, Fuesel said, "The money flowing into the coffers of organized crime continues to expand."

Because the business is so profitable, the mob is formulating new ways to do business.

"They've learned from their mistakes and just hope it doesn't happen again," he said.

The FBI's Walsh said the younger breed of mobster has learned that the old strong-armed tactics of the past simply don't work, as seen by the decline in gangland-style killings.

The mob has become much more sophisticated, Fuesel added.

"It's much harder now to spot their illegal ventures," he said. "They've learned how to launder money, how to work through legitimate businesses and there's not as much violence as there used to be."

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