In the windows of the popular Paragon Restaurant in Hobart, Indiana, simple signs let patrons know it is closed. On Wednesday, more than 150 federal agents and other law enforcement raided the almost 50-year-old business and sister eatery Gino’s Steakhouse in Merrillville as part of a federal gambling crackdown that is being called “Operation Porterhouse Parlay.”
“It is not just harmless or casual gambling,” said Adam Mildred, the U.S. Attorney for the Northern District of Indiana. “It is part of a broader pattern of criminal activity that included coercion, intimidation and financial exploitation.”
Charges were announced Thursday in Hammond, one day after 150 federal agents and other law enforcement conducted raids on the restaurants and the home of one of their owners: James “Jimmy the Greek” Gerodemos.
According to the 87-page indictment, the family’s restaurants were allegedly used as hubs for the gambling operation, where bets were placed and winnings were handed out.
But when money was owed to the operation, the indictment alleges its members employed threats and brutal means to collect.
Many of those named in the indictment were arrested Wednesday and have already had hearings and have been released pending trial.
“The goal was to shut down an illegal gambling and extortion operation that was exploiting individuals and undermining legitimate businesses in our community,” said the FBI’s Special Agent in Charge of the Indianapolis office, Timothy O’Malley.
If convicted of illegal gambling, members of the group could face up to five years in prison. However, those convicted of more serious charges like extortion and money laundering could spend up to 20 years behind bars.
At a news conference in the Hammond Federal Building Thursday, Mildred said the investigation is far from over.
“The law enforcement team will investigate any additional crimes uncovered by the evidence and any additional subjects who may have participated in the alleged criminal activity,” he said.
He and the FBI are asking people involved with or targeted by the gambling ring to step forward. They can call the FBI’s tip line at 1-800-CALL-FBI.
