$3 Million Organized Crime Bingo scam

$3.2 million bingo hall scheme alleged

By Matt O'Connor and Ray Gibson
Tribune staff reporters
Published April 26, 2002

The operators of a west suburban bingo palace skimmed more than $3.2 million in profits from the business, according to a federal indictment charging 10 men Thursday.

The 80-page indictment against 10 men charged that the Grand Palace Bingo Hall in Northlake used Italian American War Veterans posts as fronts for the illegal gambling operation, though without the knowledge of the organizations.

Among the key defendants named in the indictment were Phillip J. Cozzo, the son of a reputed mob figure, and William B. Shlifka, once a local Republican official who was convicted of ghost-payrolling for holding a no-show job with the City of Chicago.

Cozzo, 44, of Chicago was accused of being the day-to-day bingo hall manager for several years, while Shlifka, 64, of Carol Stream supervised workers and came up with the idea to use the war veterans posts as fronts, authorities said.

At least six of the other defendants were 69 or older.

Cozzo's father, Vincent "Jimmy" Cozzo, is a longtime reputed Chicago mob figure and former Teamsters official who was banned from the union in 1990 because of his alleged organized crime activities. The elder Cozzo, who wasn't named in the indictment, has been under investigation over his role as the operator of a Curacao luxury hotel and casino that went bankrupt in 1997.

Several attorneys for the accused defendants were stunned Thursday evening at word of the indictment, saying they hadn't heard from prosecutors in the case for years.

"I'm astounded that the government has dragged out these old, stale and ridiculous allegations," said attorney Thomas Anthony Durkin, who represents Michael Riccio, 76, of Bloomingdale. "I thought this investigation had ended where it should have--with no charges being filed. They must need some statistics to report to Washington."

Michael D. Monico, Shlifka's lawyer, said he was upset that prosecutors didn't give the lawyers the usual advance notice of the charges. Shlifka has "serious health problems," he said.

"My client is innocent of any wrongdoing," Monico added.

"I thought this matter was closed some time ago," said attorney Shelly B. Kulwin, who represents Fuat Useni, 44, of Bloomingdale.

Also named in the indictment were Steven V. Mariani, 77, of Bloomingdale; Carmen V. Trombetta, 74, a Las Vegas resident who formerly lived in Elmwood Park; James A. Sarno Sr., 69, of Park Ridge; Rosario DiMarco, 76, of Des Plaines; Sam Lenoci, 77, of Wood Dale; and James Prebis, 33, of Carol Stream.

All 10 defendants were charged with at least one count each of racketeering conspiracy, operating an illegal gambling business and money laundering conspiracy.

The illegal gambling involved bingo games, pull tabs and raffles and operated from 1992 to at least 1999, the charges alleged.

The indictment also identified another conspirator as Frederick P. Bigham.

Bigham, who died last summer, was a former precinct captain and secretary to Ald. Richard Mell (33rd). Bigham took his political skills to Curacao in the mid-1990s and helped build a Chicago-style ward system for one of its national parties. The party doubled its seats in the 1995 election.

"I told [the leaders], `Do a favor for everybody in the precinct. Go get a bottle of beer for them. If they need a ride, give them a ride. Drive them to the store. Do something for every one of them,'" he said in a 1997 interview.

In 1994, during the alleged racketeering conspiracy, Bigham and Phillip Cozzo were both technical advisers with the Illinois Department of Transportation, according to records. Cozzo was then being paid $3,252 a month, while Bigham's salary totaled $3,213 a month.

Shlifka, who was chief of general investigations for the Illinois Department of Professional Regulation, was sentenced to 6 months of home confinement in 1995 for the ghost-payrolling scheme.