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.
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