First of all Wiretappers, don’t forget to buy me a cup of coffee on Venmo at ganglandwire. Today we must thank our frequent guest host and mafia researcher screenwriter Camulius “Cam” Robinson. In this episode Cam goes deep into the Chicago Outfit’s influence over the Northwest Indiana organized crime rackets. In the Indian state line city of Chicago Heights, IL over 50% of the population was Italian while Indiana did not have the large Italian population. Despite its rural image Indiana organized crime was a real thing.
Lake County, IN
Fell under Chicago Heights crew of Chicago Outfit
Anthony Pinelli: early boss of NWI under Capone after Chicago consolidation, later retired to California and LA Family
Frank LaPorte boss of Chicago Heights (famous photo with Capone sitting on lawn), boss of whole crew (IL/IN) until 1972
Al Pilotto 1972-1982 indictment
Al Tocco/Dominick Palermo 1982-1990
Indiana capos:
Gaetano “Tommy” Morgano: deported to Sicily 1963 after a gambling conviction rather than go to prison
Frank Zizzo (ran operations 1963-1988): owner of Pepper Pot Pizza in Gary and Highland—NOT Santini’s Pepper Pot in Portage or Valparaiso (no lawsuits)
Bernard “Snooky” Morgano (b. 1936): son of Tommy, indicted in 1990, released in 1996
Snooky Morgano’s organization:
Anthony Leone (b. 1939) : nephew of Morgano and lieutenant,;ran street tax and gambling rackets in the area; lived in a “huge house” in Valparaiso; went into Witness Protection after testifying in syndicate trail in NWI in 1989; but left voluntarily in 1991 to return to the area and spend the holidays with his sons; he was active in the Special Olympics; and died March 13, 2019
Peter “Cadillac Pete” Petros (b 1935): street tax collector for Leone
Sam “Frog” Glorioso (b 1942): street tax collector and soldier, he was a steel worker
Sam Nuzzo (Merrillville): 80% of illegal gambling in Lake County
Efrain “Puerto Rican Frankie” Santos: ran bolita in East Chicago, partner in operation with Ken Eto, controlled Latino crime in the area, Chicago came to appreciate Santos more than Morgano
James A. “Sonny” Peterson (East Chicago): controls policy rackets in predominantly black neighborhoods, involved in scam with County Commissioner to sell nursing home to County at elevated price
Funny Indiana Organized Crime:
Al Roy Watkins: lottery operator turned federal witness, reported to Anthony Leone
1983—Anthony Leone and Al Roy Watkins both laid off as foremen at Gary Works of US Steel, so they started a lottery with &10,000 loan from Bernard “Snooky” Morgano
$600-$700 per day in the beginning, $3000 later per day, every day, except Christmas—that’s a holy day
Same numbers as Illinois Lottery Pick-Four, and they drove to Illinois and use that state lottery to “lay-off” number combinations that would break the bank
55% of every dollar to costs (15% to mob, 10% to cops, 30% to lottery winnings), 45% to Leone and Watkins
Leone was said to carry a gun and lived in a “very huge house” in Valparaiso, IN
Leone sold the lottery for $10,000 to a new lottery group, and gave Watkins nothing, but assured he could go with the sale and continue running it…basically throwing Watkins in. Watkins later said, “He sold me like a slave.
Poor Vincent “Pee Wee” Lozado: gambling operator in Merrillville, IN, caught talking to under-cover Gary police officer
Paid 10% street tax to Morgano through Leone—also had to pay 15% to Santos, because“all Latins involved in illegal activity paid street tax to Puerto Rican Frankie”
Leone owed Lozado $10,000, so Lozado left and worked only for Santos
Christmas 1985, Leone took Lozado’s business back and demanded 10% plus $1,000 a month street tax, plus the 15% he was forced to pay Santos. Lozado couldn’t complain to anyone, because they were all connected to the Outfit, so he told undercover officers he was only making book to continue paying the street tax he owed. In 1990, he was indicted and went to prison for 3 years.
Lake County, IN
Fell under Chicago Heights crew of Chicago Outfit
Anthony Pinelli: early boss of NWI under Capone after Chicago consolidation, later retired to California and LA Family
Frank LaPorte boss of Chicago Heights (famous photo with Capone sitting on lawn), boss of whole crew (IL/IN) until 1972
Al Pilotto 1972-1982 indictment
Al Tocco/Dominick Palermo 1982-1990
Indiana capos:
Gaetano “Tommy” Morgano: deported to Sicily 1963 after a gambling conviction rather than go to prison
Frank Zizzo (ran operations 1963-1988): owner of Pepper Pot Pizza in Gary and Highland—NOT Santini’s Pepper Pot in Portage or Valparaiso (no lawsuits)
Bernard “Snooky” Morgano (b. 1936): son of Tommy, indicted in 1990, released in 1996
Snooky Morgano’s organization:
Anthony Leone (b. 1939) : nephew of Morgano and lieutenant,;ran street tax and gambling rackets in the area; lived in a “huge house” in Valparaiso; went into Witness Protection after testifying in syndicate trail in NWI in 1989; but left voluntarily in 1991 to return to the area and spend the holidays with his sons; he was active in the Special Olympics; and died March 13, 2019
Peter “Cadillac Pete” Petros (b 1935): street tax collector for Leone
Sam “Frog” Glorioso (b 1942): street tax collector and soldier, he was a steel worker
Sam Nuzzo (Merrillville): 80% of illegal gambling in Lake County
Efrain “Puerto Rican Frankie” Santos: ran bolita in East Chicago, partner in operation with Ken Eto, controlled Latino crime in the area, Chicago came to appreciate Santos more than Morgano
James A. “Sonny” Peterson (East Chicago): controls policy rackets in predominantly black neighborhoods, involved in scam with County Commissioner to sell nursing home to County at elevated price
Funny Indiana Organized Crime:
Al Roy Watkins: lottery operator turned federal witness, reported to Anthony Leone
1983—Anthony Leone and Al Roy Watkins both laid off as foremen at Gary Works of US Steel, so they started a lottery with &10,000 loan from Bernard “Snooky” Morgano
$600-$700 per day in the beginning, $3000 later per day, every day, except Christmas—that’s a holy day
Same numbers as Illinois Lottery Pick-Four, and they drove to Illinois and use that state lottery to “lay-off” number combinations that would break the bank
55% of every dollar to costs (15% to mob, 10% to cops, 30% to lottery winnings), 45% to Leone and Watkins
Leone was said to carry a gun and lived in a “very huge house” in Valparaiso, IN
Leone sold the lottery for $10,000 to a new lottery group, and gave Watkins nothing, but assured he could go with the sale and continue running it…basically throwing Watkins in. Watkins later said, “He sold me like a slave.
Poor Vincent “Pee Wee” Lozado: gambling operator in Merrillville, IN, caught talking to under-cover Gary police officer
Paid 10% street tax to Morgano through Leone—also had to pay 15% to Santos, because“all Latins involved in illegal activity paid street tax to Puerto Rican Frankie”
Leone owed Lozado $10,000, so Lozado left and worked only for Santos
Christmas 1985, Leone took Lozado’s business back and demanded 10% plus $1,000 a month street tax, plus the 15% he was forced to pay Santos. Lozado couldn’t complain to anyone, because they were all connected to the Outfit, so he told undercover officers he was only making book to continue paying the street tax he owed. In 1990, he was indicted and went to prison for 3 years.
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