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Three individuals in law enforcement said to have been on the take in regard to sprawling Hammond, Indiana area sports betting business
An investigative report suggests that group even borrowed money from a drug cartel
The NBC Chicago investigative team has learned that an alleged mob-connected gambling operation based mostly out of Hammond, Indiana area relied on corrupt law enforcement officials to help them make millions of dollars from illegal wagers.
An 87-page indictment alleges 22 defendants were involved in an extensive illegal sports betting ring that stretched from New York to Los Angeles and Puerto Rico, allegedly using threats and intimidation to maintain control of the operation. While the business ran primarily out of the Northwestern region of Indiana, including Hammond, it stretched as far as Los Angeles, San Juan, Puerto Rico and even Central America.
The ringleader of the business ran two area restaurants with some of the staff accused of taking part in the illegal sports betting operation from those establishments. Agents called their own operation "Operation Porterhouse Parlay" as a result of the ties to a steakhouse owned by the ringleader, James Gerodemos (aka "Jimmy the Greek").
Federal investigators say payouts were made at multiple restaurants owned by Gerodemos.
In newly revealed information, the NBC Chicago investigative team has learned that members of the gambling enterprise had at least three law enforcement officers on the take.
The three law enforcement officers are not named in court records. Neither are their federal agencies or the local Illinois police department where they worked.
Then there was this: The investigative report suggests that drug cartels may have been tied to the group as well.
FBI agents say money was also being borrowed from a drug cartel. All of the revelations are putting the stars in alignment for additional federal charges soon. As we first reported last week, even defense attorneys expect racketeering charges, under what is known as the RICO Act, charges that usually carry double-digit prison sentences.
- Jagajeet Chiba, Gambling911.com
