Federal agents are investigating illegal gambling and extortion rings allegedly involving restaurant owners James Gerodemos and Dean Gialamas.
Also among the people who were indicted by a federal grand jury is the owner of a Burr Ridge restaurant. Prosecutors allege he served as a collector and enforcer in this illegal gambling operation.
Federal investigators spoke out after 22 people were indicted in an illegal gambling operation stemming out of Northwest Indiana. Authorities are labeling it "Operation Porterhouse Parlay," that spanned from 2021 all the way to this month.
"Our goal is to completely dismantle this group," FBI Indianapolis Special Agent in Charge Timothy J. O'Malley said.
Prosecutors accuse Gerodemos and Gialamas of being the leaders, and using Gino's Steak House in Merrillville and Paragon restaurant in Hobart to facilitate their operations. The restaurants are owned by members of the Gerodemos family, and were raided by federal investigators on Wednesday.
Federal prosecutors say the Gerodemos Gambling Organization also includes employees. The operation allegedly used illegal gambling websites to have people place sports bets across the country.
According to the indictment, lines of credit were provided so bettors can begin betting immediately. And for those with debt not paid off, prosecutors say the organization threatened them and tracked them down.
"Let me be clear though, this was not a case of harmless or casual gambling, it was part of a broader pattern of criminal behaviors that included coercion, intimidation and financial exploitation," FBI Indianapolis Special Agent in Charge Timothy J. O'Malley said.
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Convicted for dealing explosive materials without a license, Gerodemos served six months in prison back in 2015. At the time he was found to be in possession of 16,000 pounds of commercial and illegal fireworks.
In 2023, records show Gerodemos received approval from the city of Hobart to open a fireworks facility there. But it is not clear whether his prior case or his fireworks business are connected to the raids.
Gerodemos could not be reached by ABC7 for comment.
The indictment also says Filippo Rovito, the owner of popular Italian restaurant Capri in Burr Ridge, attempted to look for someone that owed the organization money at a casino in Florida. Court records point to a conversation between Rovito and his bosses, where he was willing "to knock VICTIM 2's lights out and shove his head into a machine."
ABC7 crews stopped at the Burr Ridge restaurant to talk to restaurant staff, but were immediately denied entry at the door.
Pictures from court documents also show a pizza box that was allegedly delivered to a victim's home in Texas, along with roses and a note, stating "Do the right thing or I'm heading to Valparaiso University." That's where that victim's daughter attended, prosecutors said.
On Thursday, investigators were asked if any victims were physically hurt.
"We take any threats against another person seriously, and I'm going to say that on a 30,000-foot level," said Adam L. Mildred with the United States Attorney's Office Northern District of Indiana. "I'm not going into any of the specific allegations."
Federal prosecutors believe there still could be more victims and participants in this operation, and are asking people to come forward with any information.
Some of the charges carry a maximum sentence of 20 years in prison if convicted.