FBI busts illegal gambling and money laundering network

FBI smashes alleged $20M gambling ring in Northwest Indiana raids

Federal prosecutors said 22 people were arrested and charged following FBI raids of two restaurants and a home in Northwest Indiana that they say are the center of a massive criminal gambling operation.

Agents from the FBI, IRS and U.S. Customs and Border Protection raided Gino's Steakhouse in Merrillville, Paragon Restaurant in Hobart and a home in Schererville Wednesday morning, hauling away boxes and computer parts. Prosecutors say what looked like neighborhood businesses were allegedly actually fronts for illegal gambling, money laundering and threats.

U.S. Attorney for Northern Indiana Adam L. Mildred announced arrested 22 people not just in Indiana, but also Chicago; Boston; Los Angeles; New York; Sarasota; Florida; Mesa, Arizona; and San Juan, Puerto Rico, after searching seven different Northwest Indiana locations.

Mildred said alleged gambling ring leaders James "Jimmy the Greek" Gerodemos, Dean "Dean Gem" Gialmas and Chris Gerodemos, along with 19 others, were indicted by a federal grand jury in Hammond on April 16, 2026. All three were among the 22 arrests Wednesday.

Investigators said the operation was highly organized and allegedly tied to the restaurants in Merrillville and Hobart. They, along with one of the homes searched yesterday, are owned by James Gerodemos.

Mildred said the defendants range in age from 21 to over 80 years old. They now face charges including conducting an illegal gambling business, conspiracy to commit extortion, extortion, conspiracy to commit and intention to commit credit extension by extortionate means, conspiracy to commit money laundering and more.

"Our goal is to completely dismantle the group," he said.

Prosecutors believe the organization operated from January 2021 until the raids they executed Wednesday. The indictment alleges the defendants built an illegal gambling organization online and in person at two northwest Indiana business, and allegedly used threats and intimidation to collect debts.

According to the indictment, the organization that prosecutors call "Operation Porterhouse Parlay" allowed bettors to place wagers online at websites they created, over the phone and even by text. Court records show gamblers didn't always need cash up front; some were allegedly given lines of credit to start betting immediately.

"Members of the indictment used threats and intimidation to collect on gambling debts," Mildred said.

Investigators said the money added up fast, with bets ranging from hundreds to tens of thousands of dollars.

Authorities said the restaurants themselves were used to collect and move money, with leaders running the operation, bookies taking bets, and collectors sent out to get the money. When people didn't pay, investigators said the victims were tracked down, confronted in person, and in some cases threatened.

"Let me be clear, this was not the case of harmless casual gambling," said Tim O'Malley, special agent in charge of FBI Indianapolis. "This was part of a pattern of criminal behavior - coercion, intimidation, and financial exploitation."

Prosecutors would not discuss the specifics of the case as they took questions after their announcement, repeatedly referring to the unsealed indictment for further information.

Prosecutors said the defendants arrested yesterday were making their first court appearances on Thursday. While all face federal charges, none of them have been detained.

Prosecutors and the FBI are also asking anyone who believes they may have been a victim of this organization, who has relevant information for the investigation, or know they're a likely target to come forward to the U.S. Attorney or the FBI.