Feds provide details into 'Operation Porterhouse Parlay' in NW Ind. linked to alleged gambling rings

SCHERERVILLE, Ind. (WLS) -- Federal investigators provided more details of "Operation Porterhouse Parlay" after a series of raids in northwest Indiana.

Federal agents are investigating illegal gambling and extortion rings allegedly involving restaurant owners James Gerodemos and Dean Gialamas.

On Wednesday, the FBI raided two businesses: Gino's steakhouse in Merrillville and Paragon in Hobart.

The federal indictment names the two owners of the restaurants and 20 other people in the alleged crimes, dating back to 2021.

PREVIOUS COVERAGE: FBI, IRS agents raid home, restaurants in Northwest Indiana; indictment alleges gambling operation

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 owner of the popular Italian restaurant Capri in west suburban Burr Ridge was also named in that indictment.

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.

Some of the charges carry a maximum sentence of 20 years in prison if convicted.

Both restaurants are now closed.

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 for comment.