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.