Casey "Whole Nervous System's Shot" Szaflarski Remains Behind Bars

The new alleged king of video gambling for the Chicago mob told a federal judge Tuesday that his "whole nervous system's shot" -- but it wasn't because the feds had just arrested him.

Casey Szaflarski told the judge at his initial court hearing that he had just had spinal cord surgery.

"I take a lot of medicine, your honor," Szaflarski said. "My whole nervous system's shot."

Despite his medical conditions, Szaflarski, 52, who lives in the Bridgeport neighborhood, will be held behind bars at least until his bond hearing Friday, after federal prosecutor T. Markus Funk said he could pose a danger to the community or might flee before trial.

Szaflarski was charged as part of the criminal case against alleged Cicero mob boss Michael "The Large Guy" Sarno, reputed high-ranking Outlaw motorcycle gang member Mark Polchan and five other men.

As one possible indication of how lucrative the video gambling business can be, federal prosecutors are seeking $3.6 million in illegal gambling proceeds from Szaflarski, Sarno and Polchan as part of the criminal case against the men, according to a new forfeiture allegation added to the case.

Szaflarski also is charged with failing to report more than $255,000 in income on tax returns from 2004 to 2006.

Szaflarski apparently took over the video gambling business run by the onetime head of the Chicago mob, James Marcello, and his half-brother, Michael. Szaflarski allegedly told a government informant that he learned the video poker business from Michael Marcello.

Szaflarski is accused of sharing proceeds of his gambling business with Sarno, a reputed mob leader who's also been dubbed "Big Mike" and "Fat Ass," according to court documents filed in the case.

Sarno, in turn, is charged with ordering the pipe bombing of a Berwyn video and vending machine business in 2003 that was competing with Szaflarski's business.

Investigators from the FBI, IRS and ATF gathered evidence against Szaflarski when they raided more than 20 bars and restaurants in Chicago and the suburbs last year with illegal video gambling machines. They seized thousands of dollars in illegal gambling proceeds and stripped the video poker machines of their circuit boards.

State lawmakers recently legalized video gambling, but bars and restaurants can't legally operate the devices until state regulators fashion rules overseeing what will be the largest expansion of gambling in Illinois history and distribute licenses.

Thanks to Steve Warmbir

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James Marcello Cleared of Parole Violation

Reputed Chicago mob boss James Marcello won a court skirmish with federal prosecutors Wednesday when a judge cleared him of an old charge of parole violation, but the victory did not win him his freedom.

Marcello left court to return to federal prison where the sexagenarian must continue to serve a life sentence for his part in an almost-two-decade organized crime wave that included a series of 18 long-unsolved murders.

U.S. District Judge William Hibbler ruled that federal prosecutors had failed to show that after Marcello's release from prison in 2005 he had violated the terms of his supervised release.

Marcello was arrested and put back behind bars a year later when prosecutors unsealed their sweeping Operation Family Secrets indictment of alleged leaders of the Chicago Outfit - the name of this city's organized crime family - and their followers.

He was convicted of murder in 2007 and sentenced to life in prison.

Prosecutors wanted Hibbler to revoke Marcello's supervised release. That way, there would still be a way to keep him behind bars if his conviction in the Family Secrets case were reversed.

Two other big-name reputed mobsters - Frank Calabrese Sr. and Joseph "Joey the Clown" Lombardo - are serving life sentences as a result of their convictions in the Family Secrets case.

Thanks to NewsRadio 780

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"King Rudy" Acosta and 2nd Amendment Rights in Chicago

In its wisdom, the U.S. Supreme Court finally took up Chicago's ridiculous 27-year-old handgun ban on Tuesday.

Why is it ridiculous? Because only three classes of people are comfortable with handguns in the anti-handgun city: Cops, criminals and the politically connected.

Mayor Richard Daley sure is upset that the ban might be overturned. But he probably has more armed guards protecting him than the president of Venezuela.

Chicago aldermen are allowed to carry handguns. I wanted to ask the chairman of the City Council's police committee about those gun-toting aldermen. But there was no chairman. The last one just resigned after pleading guilty to federal bribery charges, so he wasn't around.

If the Supreme Court really wanted to know why some folks in Chicago have guns and others don't, they should have called an expert witness:

Rudy Acosta, the former "gangsta" rap impresario, or King Rudy, as he likes to be known.

King Rudy, 34, lives in Chicago. He's had lots and lots of handguns.

"Oh, leave Rudy alone," said his wily and high-profile criminal defense lawyer Joseph "The Shark" Lopez. "Rudy's just another hard-working average American trying to make a dollar."

King Rudy has been arrested at least twice with guns. But he's never been convicted of a felony.

He once told police he's a former member of the Satan Disciples street gang. He now has a video portraying him as a kingpin, a "man of respect," with fine cigars, sweet rides and power.

"That's a video from a long time ago [2008]," Lopez said. "He's a self-promoter. It's the American way."

Back then, I wrote a few columns about Acosta and his monstrous castle on the Northwest Side overlooking the Kennedy Expressway.

Although the neighbors objected to the construction, King Rudy understands the Chicago Way. His father was a Democratic machine precinct captain. Rudy hired a member of the political Banks family — the first family of zoning — to win castle approval from City Hall.

Back then, I wrote he'd been arrested by Chicago police, who said they found four illegal handguns and $112,000 in cash in a wall safe. But all charges were dropped because the elite politically connected unit that arrested King Rudy was itself the target of a federal corruption probe. Is that Chicago or what?

In a recent development, Rudy's guns got him in trouble again. On Oct. 11, 2009, he was arrested at his River North condo. Officers arrived in the lobby just before 6 a.m. to find building security guards cowering "behind a concrete wall."

According to police reports, Rudy was waving a loaded 12-gauge shotgun and screaming that there were robbers in his condo.

Rudy was pointing at security monitors, saying, "They're coming from the side! They're coming after me!"

"Rudy, put the gun away, it's a shadow," a security guard told Rudy.

The report also noted that Rudy relinquished the shotgun before accompanying police up to his condo, scene of the alleged robbery. Police found two men inside, who said they were much too relaxed for such hijinks.

They were Rudy's guests, and had been "drinking and doing lines of coke," the report said.

"Further observation of the offender's apartment revealed an open wall cabinet containing eight handguns and several boxes of ammunition," the report said. And where was the robber? Acosta explained, "There was a guy who climbed off my balcony using a rope." Employing the famous dry sarcasm of Chicago cops, officers noted in the report that Acosta's condo was 46 stories above the ground.

So Acosta was charged with breaking the city's handgun law and reckless conduct — both misdemeanors. But those charges were also dropped, when police failed to appear in court.

Lopez told me his client didn't plan on recovering his guns, but that he "has every right to have guns" in Chicago.

Pardon me?

"The police got their facts wrong," Lopez said. "He was in fear of his safety. And has a PERC card, he's fully licensed. He's not a convicted felon."

PERC stands for Permanent Employee Registration Card. The state government gives these out to private investigators so they can carry guns in the anti-handgun city.

We checked state records. Before the second arrest, Acosta became fully licensed to carry through May, 2012.

Lopez said Acosta has left the gangsta rap business and is now in the private security business and dabbles in real estate.

Whew. That will make the new neighbors feel safe. With Rudy packing all that heat, what criminal would be foolish enough to rob him and try to escape on a rope down the castle walls?

Sadly, Lopez said his client isn't going to move into the castle.

"He's putting it up for sale," Lopez said. "You forced him to sell his house with what you wrote about him. It's too hot now. He can't move in. The neighbors don't want him. He's just a hard-working guy."

The Chicago residents who appealed to the Supreme Court on Tuesday are hard-working, too. But they don't make videos portraying themselves as "gangstas."

All they want is to be able to protect themselves like the boss of Chicago and the politically connected, which is their constitutional right.

And Rudy?

He's just a hard-working guy with the right to bear arms, in the anti-handgun city that works.

Thanks to John Kass

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Berwyn Businessman Casey Szaflarski Arrested on Federal Illegal Gambling and Tax Fraud Charges; Added as Eighth Defendant in New Indictment

A Chicago man who allegedly helped a criminal organization run its illegal gambling activities was arrested today on federal gambling and tax fraud charges, federal law enforcement officials announced. The defendant, Casey Szaflarski, acting through his Berwyn business, Amusements, Inc., was charged with conducting an illegal gambling business since 2002, along with two other men—among seven total—who were charged previously. The gambling and tax charges against Szaflarski were brought in a superseding indictment that was returned by a federal grand jury last week and unsealed today following his arrest. The charges allege that Szaflarski failed to report more than $255,000 of business income between 2004 and 2006, and that he failed to file a federal income tax return for 2007.

Szaflarski, 52, was scheduled to be arraigned at 2:30 p.m. today before U.S. Magistrate Judge Nan Nolan in Federal Court in Chicago. He was charged with one count of conducting an illegal gambling business, three counts of filing a false federal income tax return, and one count of failing to file a federal income tax return, for a total of five counts in the 16-count superseding indictment.

The new indictment was announced by Patrick J. Fitzgerald, United States Attorney for the Northern District of Illinois; Alvin Patton, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division in Chicago; Robert D. Grant, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; and Andrew L. Traver, Special Agent-in-Charge of the Chicago Office of the Bureau of Alcohol, Tobacco, Firearms and Explosives. Federal officials commended the assistance of the Berwyn Police Department and the Cook County Sheriff’s Department.

The charges against Szaflarski were brought in a superseding indictment in United States v. Polchan, et al., 08 CR 115, in which seven other defendants were indicted in May 2009 on racketeering conspiracy charges alleging eight years of criminal activity, including armed robberies and thefts, illegal gambling, obstruction of justice, and arson, including the pipe-bombing of a competing Berwyn video and vending machine business in 2003. Szaflasrki was not charged in the racketeering conspiracy or arson counts. He was charged with conducting an illegal gambling business, ongoing since at least 2002, with co-defendants Michael Sarno and Mark Polchan.

Today’s indictment adds a new forfeiture allegation seeking at least $3,607,201 from Szaflarski, Sarno, and Polchan as proceeds of the alleged illegal gambling activity. The indictment results, in part, from federal search warrants that were executed at more than two dozen suburban locations, including bars and restaurants, on May 27, 2009.

The three counts of filing false federal income tax returns allege that Szaflarski failed to report the following income from his closely-held business, Amusements, Inc.:

* at least $78,417 for 2004 when he reported total income of $373,736;
* at least $82,355 for 2005 when he reported total income of $262,842;
* at least $94,593 for 2006 when he reported total income of $286,071.

The indictment further alleges that Szaflarski failed to file a federal income tax return for 2007 when he received gross income of at least $95,911.

The government is being represented by Assistant U.S. Attorneys T. Markus Funk and Amarjeet S. Bhachu.

The counts against Szaflarski alone carry the following maximum terms of incarceration: operating an illegal gambling business—five years; filing false federal income tax returns—three years; and failing to file a federal income tax return—one year. In addition, each count carries a maximum fine of $250,000, except the failing to file count, which is a misdemeanor and carries a maximum fine of $100,000. Defendants convicted of tax offenses must be assessed mandatory costs of prosecution and remain liable for any back taxes, interest, and penalties owed. If convicted, the Court must determine a reasonable sentence under the advisory United States Sentencing Guidelines.

The public is reminded that an indictment contains only charges and is not evidence of guilt. Szaflarski and the defendants charged previously are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.

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Casey Szaflarski, Suspected Mob Video Poker King, Arrested on Gambling and Tax Fraud Charges

A Chicago man suspected of running a video poker business linked to the Chicago Outfit was arrested today on federal gambling and tax fraud charges, authorities said.

Casey Szaflarski, 52, was added to an indictment brought last year against Michael "the Large Guy" Sarno, a reputed mob figure accused of running a ring that pulled jewelry heists and bombed a competitor's video poker business.

Court records show authorities suspect that Szaflarski, who owned Amusements Inc. of Berwyn, entered the video poker business with the help of Mickey Marcello, a member of the mob's Melrose Park street crew who pleaded guilty in the landmark Family Secrets case.

Federal authorities carried out searches last year at businesses suspected of keeping machines run by Szaflarski's business, court records show. Agents also searched a 2007 black Hummer allegedly used by Szaflarski while making visits to businesses that used his machines. Authorities believe the machines could bring in more than $2,000 a day.

The charges against Szaflarski alleged he failed to report more than $255,000 of business income to the Internal Revenue Service between 2004 and 2006 and also failed to file a federal income tax return for 2007.

He was charged with one count of conducting an illegal gambling business, three counts of filing a false federal income tax return and one count of failing to file a federal income tax return.

Thanks to Jeff Coen

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