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
infoweb.newsbank.com.proxy.portagelibrary.info/resources/doc/nb/news/1084EE567024CDB9?p=AWNB
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.