Alleged NWI gambling ring leader stays jailed as federal judge weighs release

HAMMOND, Ind. — The man federal prosecutors call the leader of an illegal Northwest Indiana sports betting ring will remain in jail for now, after a two-hour hearing Oct. 21 in Hammond federal court.

U.S. District Judge Gretchen Lund said she would rule in the near future, the Post-Tribune reported. She appeared to expect her decision could be appealed to the 7th U.S. Circuit Court of Appeals.

Gerodemos has pleaded not guilty. All 22 defendants in the case pleaded not guilty in May. Charges are accusations, not proof of guilt.

Key facts

How he ended up back in court

On Sept. 22, U.S. Magistrate Judge Andrew Rodovich recommended that Gerodemos be released on a $5 million unsecured bond while the case is pending, the Post-Tribune reported. As a condition, his immediate relatives would have to sign off on the bond and surrender their passports. Prosecutors said they would appeal, which kept him in custody. The Oct. 21 hearing was the next step in that review.

At the September hearing, Assistant U.S. Attorney Philip Benson and defense lawyer Beau Brindley sparred over whether Gerodemos' alleged conduct was a "crime of violence," a legal standard for keeping him behind bars. Rodovich ruled it was not. He also said in court that if Gerodemos intimidated a witness, the government would likely find out and bring more charges, the Post-Tribune reported.

The indictment names Gerodemos and Dean Gialamas of Naperville, Ill., as leaders of what prosecutors call the Gerodemos Gambling Organization. Prosecutors allege the group ran sports betting out of the two longtime restaurants, laundered money and used threats to collect gambling debts.

What prosecutors argued

At the Oct. 21 hearing, Benson argued Gerodemos would flee to Greece if released and could intimidate witnesses by phone, according to the Post-Tribune.

In earlier filings, Benson wrote that the organization's reach "spanned decades" and included "the corruption of high-ranking law enforcement officials." He also noted that Gerodemos' elderly father owned land in Greece, the Post-Tribune reported in September.

A recent government filing described alleged threats against bettors and their relatives, including threatening messages and efforts to track down people who owed debts, FOX 32 reported.

What the defense argued

Brindley said Gerodemos does not hold dual Greek citizenship and would follow release conditions because he does not want to return to jail, the Post-Tribune reported. Prosecutors have said he does hold it, FOX 32 reported.

In September, Brindley said Gerodemos' assets were frozen and his passport had been seized. "Being Greek is not a basis for pretrial detention," he wrote in court filings.

Brindley said Gerodemos would live with his parents if released. Benson objected to that plan. His wife and daughter declined to sign his bond documents, citing worry about a potential legal issue if they lived together, the Post-Tribune reported.

"This is a gambling case," Brindley said after the hearing. "The government is treating it like a violence case. It isn't."

What comes next

Gerodemos stays in custody until Lund issues her ruling. If she grants release, she will also set the conditions he must follow. A status hearing in the case is set for June 2027, the Post-Tribune reported in September.

Photo credit

• Lead photo: Merrillville from the junction of U.S. 30 and I-65. P0908ih, Wikimedia Commons, CC BY-SA 3.0. Resized; shared under the same license.
• Hobart gateway at East Cleveland Avenue and Indiana 130/51. Chris Light, Wikimedia Commons, CC BY-SA 4.0. Resized; shared under the same license.
• Downtown Hammond, May 23, 2016. HammondMan, Wikimedia Commons, CC BY-SA 4.0. Resized; shared under the same license.