22 arrested in Northwest Indiana FBI raids for alleged illegal gambling ring in "Operation Porterhouse Parlay"

Federal prosecutors said 22 people were arrested  and charged following FBI raids of two restaurants and a home in Northwest Indiana that are tied to an illegal gambling operation known as "Operation Porterhouse Parlay."

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. Thursday U.S. Attorney for Northern Indiana Adam L. Mildred announced the federal agents executed 22 arrest warrants and seven search warrants, and took people into custody not just in Indiana, but also Chicago; Boston; Los Angeles; New York; Sarasota; Florida; Mesa, Arizona; and San Juan, Puerto Rico. 

Mildred said 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.

According to the indictment, which was unsealed Wednesday, the restaurants and home the FBI raided are owned by James "Jimmy the Greek" 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 commit and intention to commit credit extension by extortionate means, conspiracy to commit money laundering and more. Prosecutors said they will announce more charges in the near future.

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. 

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.

"This was not a case of harmless or casual gambling," said Tim O'Malley, special agent in charge for the FBI Indianapolis field office, which covers the entire state. "It creates fear and intimidation in the community and it impacts the whole community."

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.  

According to the indictment, Gino's and Paragon were used to facilitate the collection and distribution of money made from gambling from agents, bookies and betters involved with Gerodemos. Mildred indicated Thursday they were also used as a physical base of operations for the alleged gambling ring. Payments ranged from hundreds of dollars to as high as $50,000. Bettors involved came from all around the country, documents show.

According to court documents, Gerodemos and another person controlled and managed access to two illegal online betting sites, which also gave access to bookies and bettors.  They then tried to hide the bookmaking activities using various aliases, bank accounts and business entities, the indictment says. Gerodemos and the other individual are also accused of disguising payments related to gambling as legitimate business expenses.

Prosecutors said the defendants arrested yesterday were making their first court appearances today.