05031992 - News Article - Nuzzo gets 11 years in gambling conviction



Nuzzo gets 11 years in gambling conviction
Times Staff Report
May 3, 1992
nwitimes.com/uncategorized/nuzzo-gets-years-in-gambling-conviction/article_5d48c85b-2e06-55ec-9c10-79c92153c62b.html
HAMMOND - Northwest Indiana sports gambling chieftain Sam Nuzzo Jr. was sentenced to 11 years in prison Friday by U.S. District Judge James T. Moody. He was also fined $60,000.

Nuzzo, 46, owner of Hydad's restaurant and lounge, 31 W. 80th Place in Merrillville, was among 15 people, including four members of his family, indicted in 1990 for gambling, racketeering and extortion. The indictment was hailed as the largest organized crime case ever handled by the U.S. attorney's office for the northern district of Indiana.

A Merrillville resident, Nuzzo was imprisoned within months of the indictment after federal prosecutors learned he was continuing his sports betting operation. The time he spent in custody will be subtracted from his sentence.

Nuzzo was convicted by a Hammond federal jury in August, along with five others, of running an illegal gambling business, extortion, racketeering and conspiracy. During the sentencing Friday, Moody ruled Nuzzo was an operator and supervisor of the betting operation.

Shortly before their case was scheduled to go to trial last July, the four other members of Nuzzo's family pleaded guilty to running an illegal gambling business. They include Sam Nuzzo Sr.; his two daughters, Jennifer Kaufman and Sandra Mynes, and his son, Arthur.

Others indicted with the Nuzzo family included the alleged South Side boss of the Chicago "Outfit" crime family, Dominick Palermo and his aide, Nicholas Guzzino.

The charges leveled by a federal grand jury in 1990 resulted from an eight-year investigation by state and federal agencies.

The 31-count indictment involves charges of racketeering, illegal sports betting, high-stakes gambling and extorting protection money - called a "street tax" - from various Lake County businesses.

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