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
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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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