Raids of 2 restaurants, home in Northwest Indiana tied to illegal online gaming operation, court documents show
FBI and IRS agents were seen at two restaurants and a home in Northwest Indiana on Wednesday morning, carrying out a large investigation tied to an illegal online betting operation.
Federal agents were seen at the Paragon Restaurant in Hobart and the home of its owner, James Gerodemos, in Schererville, along with Indiana State Police. Gerodemos, along with 21 other people, was indicted for illegal gambling and extortion.
Agents were also at Gino's Steakhouse on East Lincoln Highway in Merrillville. They could be seen removing materials from a storage shed in the back of the parking lot.
According to the 86-page court indictment, the two restaurants were used to facilitate the collection and distribution of gambling revenue from agents, bookies, and betters who were involved with Gerodemos, with payment ranging from hundreds to as high as $50,000. Bettors included people from the Northern District of Indiana and others throughout the U.S., the documents read.
Court documents say that Gerodemos and another individual controlled and managed access to two illegal online betting sites, which also provided access to bookies and bettors. They would then try to hide the bookmaking activities by using various aliases, bank accounts and business entities, and disguised payments related to gambling as legit business expenses.
The agents at the Gino's Steakhouse included those from the FBI, Customs and Border Protection, and others. They took away boxes of items, computer hard drives, and other materials, and examined vehicles. The Merrillville Fire Department was also at the scene, assisting with tools.
Restaurant regulars tried to get in for lunch but were turned away by agents, leaving them curious about what was going on.
"It's strange, I— we didn't have any idea all of this was going on out here," said regular patron Martha Miller.
"He just told me I couldn't be here, I can't be here," said fellow regular Lynne Woods. She said she's been going there for years. "It is a very big shock. Especially since he won't tell you why or any of that."
An FBI spokesperson confirmed the FBI is conducting a "multi-agency operation" with "court-authorized law enforcement activity occurring at multiple locations in Northern Indiana and other states."
The FBI said there is no known threat to the public connected to this investigation, but could not provide further details because it is an ongoing investigation.
CBS News Chicago found records showing that both Paragon and Gino's, and the home agents raided, are associated with the same individual. We tried reaching out to that person, but were not able to talk to them.
CBS News Chicago has also reached out to the IRS for any information or comment, but has not heard back.