The Illegal Operation
Federal agents raided Paragon Restaurant in Hobart as part of a court-authorized, multi-agency investigation led by the FBI into an illegal gambling operation. The restaurant allegedly served as a hub for an extensive sports betting enterprise that generated up to $900,000 annually on the Super Bowl alone. The operation used websites, phone numbers, and texting to allow people across Indiana and multiple states to place sports bets, and provided lines of credit to bettors. The two restaurants, Paragon in Hobart and Gino's Steakhouse in Merrillville, were used to collect and distribute gambling proceeds and pay off winners.
Criminal Organization Structure
Federal prosecutors allege that James Gerodemos and Dean Gialamas led the Gerodemos Gambling Organization, which included family members and employees with defined roles as leaders, bookies, collectors, and enforcers. A newly unsealed 87-page federal indictment names 22 people as having participated in the criminal operation. The organization operated as a structured criminal enterprise spanning multiple states.
Extortion and Intimidation Tactics
According to the federal indictment, the organization used intimidation and extortion to collect gambling debts from those unable to pay. Aggressive collection methods included tracking down victims at their homes and workplaces, contacting family members, sending individuals to confront victims in person, and sending threatening voicemails and messages. One documented case involved a pizza box delivered to a victim's home in Texas with roses and a threatening note referencing where the victim's daughter attended university.
Charges Filed
The defendants face multiple federal charges including operating an illegal gambling business, Hobbs Act extortion conspiracy, collection of credit through extortionate means, money laundering, and wire communications in illegal gambling. Federal prosecutors are seeking to seize assets including both restaurants and homes in Illinois, Indiana, and Florida. 
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