FBI Alleges Illegal Gambling, Extortion Network Operated for Years in Northwest Indiana; ‘Operation Porterhouse Parlay’ Case Remains Pending

HAMMOND, Ind. — Nearly two months after federal agents raided two well-known Northwest Indiana restaurants and arrested 22 individuals, the sweeping criminal prosecution dubbed “Operation Porterhouse Parlay” remains in its early stages, with all defendants continuing to maintain their innocence.

After years of wondering if the GBI was actually working in Indiana, here is there big case after years of undercover work.

Federal prosecutors allege that what appeared to many patrons to be ordinary, successful restaurants in Hobart and Merrillville actually served as headquarters for a sophisticated illegal sports gambling enterprise that operated throughout Northwest Indiana and beyond for more than five years.

According to a 28-count federal indictment unsealed in April, the alleged gambling organization was centered at Gino’s Steakhouse in Merrillville and the Paragon Restaurant in Hobart. Prosecutors allege that the enterprise was led by James “Jimmy the Greek” Gerodemos, Dean “Dean Gem” Gialamas, Chris Gerodemos, and numerous associates. The government contends that the organization operated from approximately January 2021 through April 2026. (Department of Justice⁠)

Federal authorities allege bettors were able to place sports wagers in several ways, including through online gambling websites allegedly created and controlled by members of the organization, over the telephone, by text message, and in person. Unlike legal sportsbooks, prosecutors contend that some bettors were allegedly extended lines of credit, allowing them to continue gambling without first depositing funds. (Department of Justice⁠)

According to the indictment, when gamblers incurred substantial losses and were unable to pay, members of the alleged enterprise allegedly employed threats, intimidation, and extortionate collection practices to recover debts. Federal prosecutors claim that threats were made not only against bettors but, in some instances, against members of their families. The indictment further alleges that proceeds from the operation were laundered to conceal the nature and source of the funds. (Department of Justice⁠)

The investigation involved the FBI, Internal Revenue Service Criminal Investigation Division, Homeland Security Investigations, the Indiana Gaming Commission, Indiana State Police, and numerous local law enforcement agencies. According to media reports, federal investigators even placed an undercover employee inside one of the restaurants as part of the lengthy investigation. (NBC Chicago⁠)

The colorful nicknames listed in the indictment — including “Jimmy the Greek,” “Dean Gem,” “Chuckie Hoffa,” “Rami Straight Flush,” and “Paulie Scarf” — have led some observers to compare the allegations to old organized crime investigations. However, federal prosecutors have not alleged ties to any traditional organized crime family. Some legal observers have nevertheless speculated that the breadth of the allegations could eventually support additional racketeering charges, although no RICO charges have been filed to date. (ABC7 Chicago⁠)

At arraignments held in Hammond federal court in May, all 22 defendants pleaded not guilty. Defense attorneys have indicated that the case is extraordinarily complex and that any eventual trial could last several months. Given the volume of evidence reportedly collected during the investigation, a trial is unlikely to occur soon. (ABC7 Chicago⁠)

As with all criminal prosecutions, the allegations contained in the indictment are merely accusations. Every defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

For now, the future of one of Northwest Indiana’s most significant recent federal criminal prosecutions remains in the hands of the federal courts in Hammond.

Federal prosecutors allege that the organization operated illegal online and in-person gambling activities, used extortionate means to collect debts, and laundered proceeds from January 2021 through April 2026.

All 22 defendants pleaded not guilty at their initial appearances in May, and the case remains pending in federal court. HE will follow it while waiting for a Graylord style sting operation to clean up the Hoosier courts someday soon.