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.

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