A federal indictment names 22 defendants and alleges a sports betting and extortion operation tied to local restaurants.
SCHERERVILLE, IN — Federal agents searched several Northwest Indiana locations Wednesday as prosecutors unsealed charges against 22 people accused of running an illegal sports betting business and using threats to collect gambling debts.
The FBI said it led a multi-agency operation involving court-authorized law enforcement activity at multiple sites in northern Indiana and other states. The raids drew public attention after agents were seen at Gino’s Steakhouse in Merrillville, Paragon restaurant in Hobart and a home on Turnberry Lane in Schererville. The case now centers on an 87-page federal indictment filed in the Hammond Division of the U.S. District Court for the Northern District of Indiana.
The indictment names James L. Gerodemos, also known as “Jimmy the Greek,” and Dean Gialamas, also known as “Dean Gem,” as leaders of what prosecutors call the Gerodemos Gambling Organization. Federal agents and IRS criminal investigators were seen at properties Wednesday morning, with officers blocking driveways and agents carrying boxes from Gino’s Steakhouse. Chris Bavender, public affairs officer for the FBI Indianapolis Division, said the operation did not include the Michiana area. “There is no known threat to the public connected to this,” Bavender said. “As this is an active investigation, we are not able to provide further details at this time.”
The indictment alleges the organization was based in Lake County and used websites, phone numbers and text messages to take sports bets in Indiana and across the country. Prosecutors said bettors received account numbers and passwords, then could place bets online or by phone without first putting up cash. The gambling group allegedly extended credit, tracked winnings and losses, and used bookies and agents to collect from losing bettors or pay winning ones. Court records say the group used codes showing whether money was owed to the organization or owed to a bettor. The indictment says payments ranged from hundreds of dollars to as much as $50,000.
Prosecutors said Gino’s Steakhouse and Paragon were used to collect gambling proceeds, pay winning bettors and transfer money among people in the organization. The indictment says the group also used cash, checks, wire transfers and payment apps, including Zelle, while trying to make gambling payments look like legitimate business expenses or loans. It also describes Super Bowl line pool cards that allegedly sold for $500 to $25,000 per line and brought in $700,000 to $900,000 for each annual NFL Super Bowl game. The indictment says some members acted as financiers, bookies, money launderers or enforcers.
The charges include operating an illegal gambling business, conspiracy, money laundering-related counts, wire communications in illegal gambling and extortion-related offenses. Federal prosecutors also seek forfeiture of assets, including restaurants, homes and other property in Indiana, Illinois and Florida. Many defendants appeared in federal court in Indiana on Wednesday, and two business owners were expected to appear in court Thursday. The indictment, filed April 16, accuses the group of operating from about January 2021 through April 2026. The charges are allegations, and the defendants are presumed innocent unless proven guilty in court.
The extortion allegations describe threats against people who prosecutors said owed gambling debts. In one episode cited in court records, a pizza box, roses and a note were allegedly delivered to a victim’s home in Texas, with language prosecutors said referred to Valparaiso University, where the victim’s daughter attended school. The indictment also alleges that on April 9, Michael Campbell, one of the named defendants, drove a GMC truck in an effort to find out whether the organization was under law enforcement investigation. Prosecutors said the drive included erratic movements and speeds above 100 mph while following an undercover agent from U.S. 30 toward I-65.
The raids left workers at the restaurants waiting for answers. One employee said staff members were “stranded wondering if we still have jobs.” Another employee at Paragon said workers gathered to talk about what might happen next and hoped the restaurant would reopen. Both restaurants were reported closed after the searches. Gerodemos could not be reached for comment Wednesday. Court records also show Gerodemos previously served six months in federal prison after pleading guilty in an illegal fireworks and explosives case, but authorities have not said that earlier case is connected to the current indictment.
Federal officials have not released a full list of every site searched or identified all agencies that took part in the operation. The next public steps are expected in federal court in Hammond, where defendants will face hearings tied to the newly unsealed indictment.
Author note: Last updated April 30, 2026.