Convicted mobster tied to NW Indiana gambling case faces new fraud charges

A man charged in a sweeping federal investigation into an alleged northwest Indiana mob-linked gambling operation is facing a new set of felony charges in Rhode Island, prompting a federal judge to reconsider whether he should remain free while awaiting trial.

Giuseppe "Little Joe" Manzi, one of 22 defendants charged in the federal Operation Porterhouse Parlay case, was scheduled to appear in federal court Thursday morning for a hearing on his pretrial release conditions.

The hearing comes after Manzi was charged in Rhode Island in connection with an alleged April 24 incident. According to court records, he now faces five felony charges: money laundering, obtaining money or property under false pretenses, using a computer to commit fraud, casino gambling and conspiracy. Five other people are also named in the conspiracy charge.

Manzi posted a $15,000 bond in the Rhode Island case and was released pending further court proceedings.

The new allegations come just months after a federal grand jury in Indiana returned a 28-count indictment charging 22 people in Operation Porterhouse Parlay, a yearslong investigation into what prosecutors describe as an illegal sports betting operation with alleged organized crime ties.

Operation Porterhouse Parlay

The backstory:

Federal prosecutors allege the gambling ring operated from January 2021 through April 2026 and was based out of Geno's Steakhouse in Merrillville and Paragon Restaurant in Hobart. Investigators say the operation involved illegal sports betting, money laundering, threats and intimidation.

As part of the Indiana case, Manzi was granted pretrial release in May under strict conditions. Those conditions included restrictions preventing him from traveling outside northwest Indiana and Massachusetts and prohibiting him from entering casinos or other gambling establishments.

Thursday's hearing was expected to determine whether those release conditions should be modified in light of the newly filed Rhode Island charges.

Federal officials indicated the alleged Rhode Island conduct occurred before Manzi's release conditions were established. 

What's next:

The court is now reviewing whether knowledge of those allegations would have changed its earlier decision to allow him to remain out of custody while awaiting trial.