Two business owners will appear in court Thursday, accused of leading a gambling operation out of their restaurants and threatening multiple victims who couldn't pay off debts.
A newly unsealed 87-page federal indictment alleges two Northwest Indiana restaurants were used as facades for a yearslong, multi-state gambling and extortion ring.
It shows 22 people have been now indicted, including James Gerodemos and Dean Gialamas, who prosecutors say led the criminal operation.
The two are longtime owners of Paragon in Hobart and Gino's Steakhouse in Merrillville. Both restaurants were raided by the FBI earlier Wednesday, although the FBI has not confirmed whether those raids are connected to the indictment.
"We have probably, I don't know how many employees that work here, but now we are all kind of stranded wondering if we still have jobs," an employee told ABC7.
Federal prosecutors say the Gerodemos Gambling Organization, which includes some family members and employees, used websites, phone numbers and texting to have people place sports bets in Indiana and across the country and, according to the indictment, "provided gamblers lines of credit allowing the bettors to begin their betting almost immediately through the illegal gambling websites, or over the telephone, without needing any actual cash to do so."
The indictment also alleges the two restaurants were used to collect and move around gambling proceeds and pay off winners. And for those with debt not paid off, prosecutors say the organization threatened them and their relatives with violence, in some cases tracking down victims out of state.
Pictures from court documents allegedly show a pizza box 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.
Prosecutors are asking to seize assets, including both restaurants and homes in Illinois, Indiana, and Florida.
Chopper 7 was over a home in the Briar Ridge subdivision, a gated community in Schererville, when there was a lot of activity in the driveway with FBI agents on the scene Wednesday morning.
Agents were seen taking photos and carrying some items on Turnberry Lane.
Chopper 7 also captured agents at Gino's Steakhouse in Merrillville. They even took food from the premises.
ABC7 learned that the owner of the house is also the owner of Gino's: James Gerodemos.
Law enforcement officials from the IRS' criminal investigation division were at the restaurant.
Federal agents were also seen at Paragon restaurant in Hobart.
Both restaurants are now closed.
Employees said they don't know what this is about, but stand by the Gerodemos family.
"If we need a day off, if we need anything from them, they are family first. And they make sure we are taken care of," an employee said.
An employee at Paragon restaurant expressed dismay at the situation.
"The workers all got together this morning to have a powwow basically and figure out what we are going to do. We don't know anything. We just pray to God that yes we are going to open, and everything is going to be OK, and that the Gerodemos family is going to be OK," the employee said.
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.
The FBI released the following statement:
"This is an FBI-led, multi-agency operation, and court authorized law enforcement activity is occurring at multiple locations in Northern Indiana and other states."
"There is no known threat to the public connected to this. As this is an active investigation, we are not able to provide further details at this time."
Gerodemos could not be reached for comment.