Nick's Amusements Warrant

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Affidavit in Support of Search and Seizure Warrants

I. Purpose of the Affidavit

This affidavit is submitted in support of applications for two search warrants and

one seizure warrant. It also will be submitted in support of a complaint for civil forfeiture

of real property and the contents of bank accounts. Based on the following information,I submit that there is probable cause to believe that John ZORZIT and Nick's

Amusements did knowingly and unlawfully conduct an illegal gambling business inviolation of 18 U.S.C. section 1955.

I submit that there is also probable cause to believe that John ZORZIT and Nick's

Amusements did knowingly and unlawfully conduct, attempt to conduct, and cause

others to conduct financial transactions affecting interstate commerce that involved the

proceeds of a specified unlawful activity, that is an illegal gambling business, knowing

that the transactions were designed in whole or in part to conceal or disguise the nature,

the location, the source, the ownership, and the control of those proceeds, and knowing

that the property involved in the financial transactions was the proceeds of some form ofunlawful activity, in violation of 18 U.S.C. sections 1956(a)(1 )(B)(i) and 1957.

I submit that there is also probable cause to believe that the items described on

Attachment A constitute evidence, fruits, and instrumentalities of the above-described

offenses and are likely to be found in the following tvllOlocations:

a. 8100 Harford Road, Baltimore, Maryland 21234, known as the business

location of Nick's Amusements, Inc.

b. 18 Brett Manor Cour:t, Cockeysville, Maryland 21030, known as the

residence of ZORZIT.

I submit that there is also probable cause to believe that the contents of the

following accounts include illegal gambling funds uSled in violation of 18 U.S.C. section

1955, which are subject to seizure and forfeiture pursuant to 18 U.S.C. section 1955(d),

and that the contents of the following accounts also have been involved in transactions

in violation of 18 U.S.C. section 1956(a)(1 )(B)(i) and section 1957, and, therefore, the

contents of those accounts are subject to seizure and forfeiture pursuant to 18 U.S.C.

sections 981(a)(1)(A) and 984:

a. Bank of America business account number 0039-2723-2479 in the name

of Nick's Amusements, Inc., Florida.

b. Bank of America business account number 0039-3307-6137 in the name

of Nick's Amusements, Inc., Music Account.

c. Bank of America business account number 0044-6704-3897 in the name

of Nick's Amusements, Inc., General Account.



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d. Bank of America business account number 0039-3396-8753 in the name

of Nick's Amusements, Inc., Loan Account.

e. Bank of America business account number 0039-3836-8138 in the name

of Nick's Amusements, Inc., Tournament.

f. Bank of America business account number 0039-3836-8455 in the nameof Norino Properties, LLC.

g. Bank of America business account number 0039-2466-3397 in the name

of Norino Properties, LLC, Number 2.

h. Bank of America business account number 0039-2466-2796 in the name

of Norino Properties, LLC, T/A Stoneybrook Veranda Green, Unit 1524.

i. Bank of America business account number 0039-2466-2806 in the name

of Norino Properties, LLC, T/A Clubside Circle.

j. Bank of America business account number 0039-3723-5453 in the name

of Nerino Properties & Construction, Inc.

k. Bank of America business account number 0044-6704-3606 in the name

of Norino Management, Inc., General Account.

I. Bank of America business account number 0039-3836-9580 in the name

of Balsamo And Norino Properties, LLC.

m. Bank of America business account number 0039-3723-4700 in the name

of Balsamo-Norino Properties, LLC.

n. Bank of America business account number 0039-2466-2864 in the name

of Balsamo-Norino Properties, LLC, Number 2.

I submit that there is also probable cause to believe that the cash proceeds of the

illegal gambling business, which are forfeitable pursuant to 18 U.S.C. section 1955(d),

are traceable into the purchase of the following real properties, and that these real

properties are, therefore, subject to forfeiture pursuant to 18 U.S.C. section

981 (a)(1 )(C); I submit that the purchase of the real properties with the proceeds ofspecified unlawful activity is a financial transaction in violation of 18 U.S.C. section

1956(a)(1 )(B)(i), and, therefore, the real properties, which were involved in such

transactions, are also subject to forfeiture pursuant to 18 U.S.C. section 981(a)(1)(A):

a. 2709 Washington Boulevard, Baltimore, Maryland.

b. 18 Brett Manor Court, Hunt Valley, Maryland.

c. 1122 West Baltimore Street, Baltimore, Maryland.

d. 29948 Garrett Highway, Accident, Maryland.

e. 43 Fire Tower Road, Friendsville, Maryland.

f. 202 Teaberry Lane, Accident, Maryland.

g. 216 East Alder Street, Garrett, Maryland.h. 6900 Belair Road, Baltimore, Maryland.

i. 409 Eastern Avenue, Essex, Maryland.

j. 1112 Beech Drive, Middle River, Maryland.

k. 424 South Payson Street, Baltimore, Maryland.

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I. 8100 Harford Road, Baltimore, Maryland.

m. 408 Ingleside Avenue, Catonsville, Maryland.

n. 194 Unz Lane, Swanton, Maryland.

o. 532 North Montford Avenue, Baltimore, Maryland.

p. 14 Stillwater Drive (lot 17), Swanton, Maryland.

q. 10 Warren Road, Cockeysville, Maryland 21030.

II. Affiant

I am a Special Agent with the Internal Revenue Service (IRS), Criminal

Investigation Division (CID), and have served in that capacity since December of 2003.

Your affiant's official responsibilities include conducting investigations of possible

criminal violations of Internal Revenue Laws (Title 26 of the United States Code), the

Bank Secrecy Act (Title 31 of the United States Code), the Money Laundering Control

Act (Title 18 of the United States Code) and related offenses. Your affiant has

successfully completed Criminal Investigator Training and Special Agent Investigative

Techniques Training at the Federal Law Enforcement Training Center. The trainingincluded courses in financial investigative techniques, accounting, tax, criminal

investigation techniques, criminal law and search warrants.

Immediately prior to becoming a Special Agent, your affiant was employed

approximately ten months as a Special Agent Student Trainee with IRS-CI. As a

Special Agent Student Trainee, your affiant's responsibilities included assisting Special

Agents with investigations, by analyzing bank, re!cords, reconciling tax returns to

available books and records and conducting interviews of principals, witnesses and

others. Your affiant has a Bachelor of Science Degree, majoring in Management

Science with a concentration in Accounting.

I have participated in the execution of numerous search and seizure warrants.

These included searches of residences, businesses and safe deposit boxes. Materials

sought and seized during execution of these warrants included records pertaining to the

income and expenditures of businesses and individuals, currency, monetary

instruments and assets.

III. Applicable Statutes

The following federal and state statutes are applicable to this affidavit:

18 U,S.C. Section 1955. Prohibition of an Illegal Gambling Business:(a) Whoever conducts, finances, manages, supervises, directs, or owns all or

part of an illegal gambling business [has violated the criminal laws of the United

States].

(b) As used in this section-

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(1) "illegal gambling business" means a gambling business which-

(i) is a violation of the law of a State or political subdivision in whichit is conducted;

(ii) involves five or more persons who conduct, finance, manage,supervise, direct, or own all or part of such business; and

(iii) has been or remains in substantially continuous operation for a

period in excess of thirty days or has a gross revenue of $2,000 inany single day.

(2) "gambling" includes but is not limited to ... maintaining slot machines ....(3) "State" means any State of the United States ....

* * *

(d) Any property, including money, used in violation of the provision of this

section may be seized and forfeited to the United States.

Maryland Criminal Code Section 12-302 Illegal slot machines.

(a) Except as allowed under sections 12-304 through 12-306 of this subtitle, a

person may not locate, possess, keep, or operate a slot machine inthe State ....

Maryland Criminal Code Section 12-301 Illegal slot machines.

In this subtitle:

(1) "slot machine" means a machine, apparatus, or device that:

(i) operates or can be made to operate by inserting, depositing, or placing

with another person money ...; and(ii) through the element of chance or any other outcome unpredictable by

the user, awards the user:

1. money, a token, or other object that represents or that can beconverted into money; or2. The right to receive money, a token, or other object that

represents and can be converted into money; and

(2) "slot machine" includes"(i) a machine, apparatus, or device described in item (1) of this section

that also sells, delivers, or awards merchandise, money, or some other tangible

thing of value ....

Title 18 U.S.C. Section 1956(a)(1)(B)(i) Laundering of Monetary Instruments:Whoever, knowing that the property involved in a financial transaction represents

the proceeds of some form of unlawful activity, conducts or attempts to conductsuch a financial transaction which in fact involves the proceeds of specifiedunlawful activity- ... knowing that the transaction is designed in whole or in part-(i) to conceal or disguise the nature, the location, the source, the ownership, orthe control of the proceeds of specified unlawful activity [has violated the criminal

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laws of the United States].

Title 18 U.S.C. Section 1957(a) Engaging in Monetary Transactions:

YVh~e~er ... kno.wingly engages or attempts to engage in a monetary transactionIn cnmlnally denved property of a value greater than $10,000 and is derived from

specified unlawful activity [has violated the criminal laws of the United States]'

Title 18 U.S.C. Section 981 Asset forfeiture:

(a)(1) The following property is subject to forfeiture to the United States:

(A) Any property, real or personal, involved in a transaction or attemptedtransaction in violation of section 1956, 1957 ... of this title, or any propertytraceable to such property. .

IV. Probable Cause

1. In 2003, the Baltimore County Police Vice Unit (BCPVU) began an investigation of

various locations that reportedly maintained iI!Iegal slot machines. Undercoverofficers received cash payouts after playing thesl~ slot machines and discovered that

the machines were placed and maintained by Nick's Amusements, a company

owned and run by John ZORZIT. The investigation later revealed that cash

proceeds from the slot machines were deposited into various Nick's Amusements

bank accounts. These funds were then transferred to other businesses owned andrun by ZORZIT, and these funds were then used to purchase real properties.

South Marlyn Avenue

2. On April 4, 2003, acting on a citizen complaint about illegal slot machines,

undercover officers with the BCPVU enteredthH South Marlyn Inn, located at 727South Marlyn Avenue. Detectives placed a $10 bill in the currency acceptor on oneof the six slot machines in the restaurant bar, which caused the machine to operate.

The detectives played the machine, which had a video screen that displayed icons in

a random manner, and, through the element of chance, awarded the detectives 700

points/credits, which registered on a display, based on various predetermined

combinations of icons. The detectives showed the display to a bar employee, who

placed a metal object into the left side of the slot machine causing the 700points/credits to clear from the display. Based on training and experience, I know

that there is no reason to have such a point-clearing mechanism on such a machineexcept to facilitate a payoff to a customer. The point-clearing mechanism allows the

machine operator to avoid paying off more than once for the same points. Afterclearing the points, the bar employee paid the detectives $35 in cash for the 700

points.

3. BCPVU officers executed a search warrant at the South Marlyn Inn on April 14,

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2003, and seized six slot machines. On November 3, 2003, the owner of the South

Marlyn Inn reached a plea agreement with the States Attorney's Office for Baltimore

County, Maryland, that included forfeiture of the six slot machines as well as the

cash that was in the machines.

4. Records at the Department of Permits and Development Management for Baltimore

County (OPOM) showed that four "amusement devices" were licensed at the SouthMarlyn Inn. Under Maryland law, DPDM licenses any vending machine located in a

public place. The DPDM license application identified the vendor who supplies the

devices for this address as Nick's Amusements, Inc., and John ZORZIT signed the

application as the owner/officer for the company. The Maryland Department of

Assessments and Taxation (MOAT) records show that 727 South Marlyn Avenue is

owned by Norino Properties. The articles of incorporation for Nick's Amusements

and for Norino Properties were both signed by ZORZIT.

Glen-Mar VFW Post 8849

5. On September 2, 2004, acting on a citizen complaint about illegal slot machines,

undercover officers with the BCPVU entered the Glen-Mar VFW Post 8849, located

at 730 Wampler Road, Baltimore, Maryland. While inside, the officers saw a VFW

employee pay a female patron in cash for 1,301 poinUcredits that had accumulated

on a slot machine. The machine was operated by putting cash into a receptor and

pushing buttons to reveal icons on a video screen that displayed icons in a random

manner, and, through the element of chance, awarded the operator points/credits,

which registered on a display, based on various predetermined combinations of

icons. After the employee made the cash payment, the detectives saw the machine

cleared of the points/credits. Then on September 21, 2004, officers executed a

search warrant and seized four slot machines.

6. DPDM records inidicated that four amusement devices were licensed at 730

Wampler Road. The DPDM license application identified the vendor who supplied

the machines for this address as Nick's Amusements; ZORZIT signed the

application on behalf of the company. On March 1, 2005, ZORZIT signed a plea

agreement as president of Nick's Amusements that included the forfeiture of the four

slot machines as well as the cash that was in the machines.

GP Liquors, Rosedale Station Lounge, and Hot Shots Billiards

7. On June 13, 2006, a BCPVU detective saw a white E150 van parked in front of GP

Liquors located at 6060 Rossville Boulevard with a logo on it that read "Norino

Construction, General Contractors" and bearing Maryland license tag 03H 113. The

detective went inside and saw a man sitting behind the far end of the counter

counting cash. Once the man finished counting, he put the cash into a wooden box,

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went outside and got in the white van and drove away. The detective followed thevan to the Rosedale Station Lounge, located at 8101 Pulaski Highway, where the

man parked and went inside carrying the wooden box. After several minutes, the

man came out, walked a few doors down, and entered Hot Shots Billiards. Afterseveral minutes, the man returned to the van and drove off. Officers subsequentlyconfirmed that slot machines were located in each location.

8. According to DPDM records, amusement devices are licensed at Rosedale Station

Lounge, Hot Shots Billiards, and GP Liquors by Nick's Amusements. A check with

the Maryland Motor Vehicle Administration (MVA) established that license tag

number 03H113 belongs to a 1999 Ford van, registered to Nick's Amusements, Inc.

located at 8100 Harford Road, Baltimore, Maryland. According to MOAT records,

8100 Harford Road is owned by Norino Properties LLC. The U.S. Postal Service

verified that first class mail is delivered to 8100 Harford Road that is addressed to

ZORZIT, Nick's Amusements Inc., Norino Properties LLC, Norino Properties &Construction Inc., and Balsamo-Norino Properties LLC. Surveillance by agents on

January 21, 2009, confirmed that these businesses are still located at that address.

Champs Sports Bar and Grill

9. On September 6, 2006, acting on a citizen complaint about illegal slot machines,

undercover officers with the BCPVU entered the Champs Sports Bar and Grill,located at 6600 Baltimore National Pike. Detectives placed a $20 bill in the currency

acceptor on one of the three slot machines in the restaurant bar, which caused the

machine to operate. The detectives played the machine, which had a video screenthat displayed icons in a random manner, and, through the element of chance,

awarded the detectives 521 points/credits, which registered on a display, based on

various predetermined combinations of icons. The detectives showed the display toa bar employee, who cleared the points and paid the detectives $25 in cash for the

521 points. BCPVU officers executed a search warrant at the Champs Sports Bar

and Grill on September 27, 2006, and seized two slot machines.

10. Records at DPDM indicated that three "amusement devices" were licensed at the

Champs Sports Bar and Grill by Nick's Amusements, Inc., and John ZORZIT signed

the application as the owner/officer for the company. The slot machines and the

cash inside them was forfeited to Baltimore County.

The Collector

11. Just before BCPVU detectives executed the search warrant at Champs onSeptember 27th

, they saw a man get out of a white Ford Van bearing a decal on theside that read "Norino Construction General Contractors." Inside, the detectivesfound the man as he was opening one of the slot machines and removing the

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money, a~d identified him as Robert Olszewski. The officers saw accountingfeatures displayed on the slot machine's screen that track the winnings on the

machine; based on training and experience, I know that there is no reason for a slot

machine that is not for gambling to have such accounting features. The tool box thatOlszewski carried into the bar contained a document that listed the names of several

bars/businesses throughout Baltimore County and Baltimore City, as well as days of

the week next to the bars/business. According to the BCPVU detectives, this paperis a route schedule used to make collections from the slot machines.

1? Detectives interviewed Olszewski, who stated that he had been an employee of

Nicks Amusements and Norino Construction for 14 years. The owner of Nick's

Amusements and Norino Construction is ZORZIT. He goes to Champs Bar and Grill

once a week in order to service the machines and take out the cash. He alwaystakes all cash back to the office of Nick's Amusements at 8100 Harford Road.

The White Van

13.According to MVA records today, the white Ford Van that Olszewski drove is

registered to Nick's Amusements at 18 Brett Manor Court, Cockeysville, Maryland.

MVA records also indicate that ZORZIT has a driver's license listing his address as

18 Brett Manor Court in Cockeysville. Accordin~} to MOAT records today, 18 Brett

Manor Court, Cockeysville, Maryland is owned by Norino Properties, LLC. The U.S.

Postal Service reported that first class mail addressed to ZORZIT, Nick's

Amusements, and Norino Properties is being delivered to 18 Brett Manor Court.

This demonstrates that records pertaining to these entities are likely to be found at

that address. Surveillance by agents on several days ending on January 15, 2009,

confirmed that ZORZIT continues to reside at this address. During surveillance at

the business on January 21, 2009, agents saw ZORZIT take a folder of records fromthe Harford Road business location and place the folder in his car.

14. BCPVU detectives seized the white Ford van on September 2yth, and inside they

found cash in a red bag, game manuals for slot machines, replacement parts for

the machines, and a device used to knock off the points/credits when payouts are

made. The detectives also found route schedules, loan payment receipts, and other

documents for Nick's Amusements. It is noteworthy that even though Olszewski

was making collections, there were no records of the amounts that he was

collecting.

Carson's Creekside Restaurant and Lounge

15. On November 6, 2006, undercover officers went into Carson's Creekside Restaurant& Lounge, located at 1110 and 1112 Beech Drive, Baltimore. The officers put $20into one of the slot machines, played the machine, and accumulated 1000

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points/credits. A bar employee looked at the credits on the screen, pressed a hidden

button on the machine to clear the credits, went into a back room, returned, and

handed the bartender $50. The bartender then gave the$50 to the undercoverofficers.

16. On November 10, 2008, acting on a citizen complaint about illegal slot machines,

undercover officers with the BCPVU entered Carson's Creekside, located at 1110

Beech Drive, Baltimore, Maryland 21220. While inside, detectives placed a$5 bill in

the currency acceptor on one of the four slot machines in the restaurant bar, whichcaused the machine to operate. The detectives played the machine, which had a

video screen that displayed icons in a random manner, and, through the element of

chance, awarded the detectives 1600 point/credits, which registered on the display,based on various predetermined combinations of icons. The female bartender

looked at the slot machine and walked away. A second female employee walkedover to the slot machine and activated the knock off feature located underneath the

currency acceptor, clearing the points/credits. Based on training and experience, I

know that there is no reason to have such a point-clearing mechanism on such amachine except to facilitate a payoff to a customer. The point-clearing mechanismallows the machine operator to avoid paying off more than once for the same points.After clearing the points, the bar employee paid the detectives $80 in cash for the1600 points.

17.DPDM records show three amusement devices licensed at 1110 Beech Drive by

Nick's Amusements; the license applications were signed by ZORZIT. MOAT

records show that the property located at 1110 and 1112 Beech Drive is owned byNorino Properties, LLC.

VFW Post 8849 again

18. On November 13, 2006, BCPVU detectives saw a white box truck with a decal on

the side that said "Norino Construction/General Contractors" that was parked in front

of the VFW Post 8849 located at 730 Wampler Road in Baltimore County. The

detectives saw a man remove what appeared to be a slot machine from the rear ofthe truck and take it in a side door of 730 Wampler Road.

8100 Harford Road - the office

19. On October 16, 2007, while on surveillance, your affiant and BCPVU detectives saw

Robert Olszewski talking with ZORZIT in the parking lot of the business location ofNick's Amusements, Inc., 8100 Harford Road, Baltimore, Maryland. Shortly,Olszewski and a third man got into a van with a "Norino Properties" decal on theside, and drove to a shop at 9610 Pulaski Highway. Olszewski and the other mantook boxes from the van inside the shop.

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Gilmor Pleasure Club and Starters Bar

20.After a couple of hours, Olszewski and the other man carried various items,

including a red bag similar to the cash bag described in paragraph 14, and drove to

the Gilmor Pleasure Club, located at 347 South Gilmor Street in Baltimore.

Olszewski went inside carrying a cardboard box. After about ten minutes, he cameout carrying the same box and drove to Starters Bar, located at 3311 Annapolis

Road in Baltimore. Both men went into the bar carrying a red box and tools.

Approximately ten minutes later, they returned to the van and drove away.

Westway Liquors

21.ln May 2008, acting on a citizen complaint, undercover officers went into lamperi's

Westway Liquors located at 5312-5320 Edmondson Avenue in Baltimore. The

detectives watched as an employee of Westway Liquors paid a patron an

undetermined amount of cash based on points/credits accumulated on a slot

machine. DPDM showed that two amusement devices were licensed at the addressof 5318 Edmondson Avenue. The DPDM license application identified the vendor

who supplies the EGO's for this address as Nick's Amusements, Inc. and ZORZIT

signed the application as the President of the company.

22.A search warrant was executed at lamperi's Westway Liquors on June 16,2008,

and the two slot machines were seized. Subsequent analysis of the machines

showed that they were indeed operating as slot machines.

Overlea Station (formerly Chuckles Bar & Grill)

23. On November 18, 2008, your affiant/BCPVU detectives observed two slot machinesat Overlea Station, formerly known as Chuckles Bar & Grill, located at 6900 Belai~

Road in Baltimore. DPDM records show that three amusement devices are licensed

at 6900 Belair Road and that the vendor who supplies the devices is Nick's

Amusements. MOAT records indicate that the property located at 6900 Belair Roadis owned by Norino Properties, LLC.

Dick's Halfway House

24. On November 18, 2008, your affiantlBCPVU detectives observed three slot

machines at Dick's Halfway House located at 8013 Philadelphia Road, Baltimore,

Maryland. DPDM records show that three amusement devices are licensed at 8013Philadelphia Road and that the vendor who supplies the devices is Nick's

Amusements. MOAT records show that the property located at 8013 Philadelphia

Road, Baltimore, Maryland 21237 is owned by Norino Properties, LLC.

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25. Based on the foregoing, your affiant submits that there is probable cause tobelieve that Nick's Amusements is locating and operating slot machines in violation

of Maryhland Criminal Code section 12-302 because the devices are operated by

placing money in them and, through the element of chance, the user can be

awarded money. Based on the foregoing, your affiant submits that there is probable

cause to believe that Nick's Amusements is operating as an illegal gambling

business because (a) it operates illegal slot machines in violation of Maryland state

law; (b) it involves five or more persons who conduct, finance, manage, supervise,direct, or own the business, including ZORZIT, Olszewski, and the people operating

the twelve locations mentioned above; and (c) it has been in operation for more than30 days and has gross revenue of more than $2,000 in a single day.

Financial and Banking Information

26. Based on the evidence gathered thus far, your affiant has made the following

computationsa. Total funds forfeited to Baltimore County, Maryland since 2003 is as

follows: 2003: $1911 from 6 machines; 2004: $5711 from 4 machines;

2006: $2115 from 2 machines. This is a total of $9737 from 12 machines.b. The average gambling proceeds for each slot machine is $811 ($9737 +

12 machines) per week or $42,172 ($811 x 52) per year.

c. Your affiant believes the total proceeds from ZORZIT's illegal gambling

business for the years 2003 through 2006 to be approximately

$18,386,992. This figure is computed based upon DPDM information that

ZORZIT has licensed approximately 109 amusement devices in 33

locations throughout Baltimore County, Maryland with each earning an

estimated $42,172 per year in gambling proceeds for a total per year of$4,596,748 ($42,172 x 109) between the years 2003 through 2006 (four

years).d. Your affiant further believes the average weekly proceeds of $811 per

machine are well below public estimates of the earning potential of these

slot machines. According to the report entitled "Underground Video

Gambling Industry Costing Maryland More than $15 Million Annually in

Uncollected T,axes," published in 2006 by The Abell Foundation, a slot

machine can earn up to $1,000 per week.e. Your affiant believes this is a conservative figure for ZORZIT's total

proceeds from illegal gambling because it is based upon the number of

machines actually licensed by DPDM in Baltimore County. Unlicensedmachines in Baltimore County and machines located in other MarylandCounties and Baltimore City are not included.

f. Your affiant also believes this figure does not reflect the total receiptsearned by ZORZIT and Nick's Amusements, Inc., because DPDM records

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show that an additional 86 amusement devices, such as jukeboxes, pool

tables, pinball machines, cigarette machines and other electronic games,

are licensed in Baltimore County. Further, the figures do not include any

such devices that are unlicensed or located in other Maryland Countiesand Baltimore City.

27. For the years 2003 through 2006, bank documents showed cash deposits into the

following business accounts held in the Bank of America, which does business inMaryland and has its main offices in North Carolina:

Business Bank Account Amount

Nick's Amusements Provident xxxx7003 $5,126,240

Nick's Amusements Bank of America xxxx3897 $1,510,131(General Account)

Nick's Amusements Bank of America xxxx8753 $1,510,019

(Loan Account)

Nick's Amusements Bank of America xxxx2479 $ 598,953(Florida Account)

Total $8,745,343

Bank records for 2007 through July 2008 indicate consistent cash deposits through thisperiod as well. Bank records also indicate that Nick's Amusements opened its bank

account at Provident Bank on or about March 30, 1995.

28. During the deposit analysis of the above-mentioned accounts, your affiant identified

electronic transfers originating from these four Nlick's Amusements accounts directly

into the following accounts totaling $1,927,522 for the period 2003 through 2006.

Similarly, bank records for 2007 through July 2008 indicate consistent monthlytransfers from the three Bank of America accounts into the following accountsthrough this period as well:

a. Bank of America business account number 0039-3836-8455 in the nameof Norino Properties, LLC.

b. Bank of America business account number 0039-2466-3397 in the nameof Norino Properties, LLC, Number 2.

c. Bank of America business account number 0039-2466-2796 in the nameof Norino Properties, LLC, T/A StoneybrookVeranda Green, Unit 1524.

d. Bank of America business account number 0039-2466-2806 in the nameof Norino Properties, LLC, T/A Clubside Circle.

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of Norino Properties & Construction, Inc.

f. Bank of America business account number 0044-6704-3606 in the nameof Norino Management, Inc., General Account.

g. Bank of America business account number 0039-3836-9580 in the name

of Balsamo And Norino Properties, LLC.



I. Bank of America business account number 0'039-2466-2864 in the nameof Balsamo-Norino Properties, LLC, Number 2.

j. Bank of America business account number 0039-3307-6137 in the nameof Nick's Amusements, Inc., Music Account.

k. Bank of America business account number 0'039-3836-8138 in the name


A number of these transfers of funds into each account are in amounts greater

than $10,000 each. Based on training and experience, your affiant knows thatoperating an illegal gambling business in violation of 18 U.S.C. section 1955 is

"specified unlawful activity" according to 1B U.S.C. section 1956(c)(7)(A) and

section 1961(1)(B). Because a number of transfers into each account are in

amounts greater than $10,000 each, these transfers are monetary transactions in

property derived from specified unlawful activity in violation of 18 U.S.C. section

1957. Your affiant also submits that the deposit of cash proceeds of the

gambling business into the Bank of America accounts meets the definition of a"financial transaction" in accordance with 18 U.S.C. section 1956(c)(4)(B); also,

the transfer of those funds from the deposit accounts to the other Bank of

America accounts also is such a "financial transaction." Your affiant also submits

that the movement of the funds from the Nick's Amusement accounts to thevarious Norino Properties accounts and the Music Account and the Tournament

Account, are transactions that are designed to conceal and disguise the nature,location, source, ownership, and control of the gambling proceeds. This

conclusion is supported by the information set forth in paragraphs 33-51 below,

which outlines the purchase of real properties in the names of Norino Propertiesand others after funds are transferred as outlined in this paragraph.

29.As is mentioned in paragraph 12 above, at least one collector took cash that was

collected from the slot machines back to the offices of Nick's Amusements, Inc., at8100 Harford Road. As is mentioned in paragraph 14 above, it is apparent that at

least that same collector for Nick's Amusements, Inc., was keeping no records of theamounts that he was collecting from the slot machines. Based on training andexperience, your affiant knows that it would be impossible to keep accurate income

records for the numerous locations where s~ot machines were located withoutkeeping some sort of log of the amounts collected at each location. Based on

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training and experience, your affiant also knows that it is common for a supplier ofslot machines to send a collector to take the cash out of the machines; the supplier

of the machines then reimburses the owner of the location for any cash payouts to

winners, and then the remainder routinely is split between the owner and themachine supplier. As is mentioned in this affidavit, however, many of the locations

that have Nick's Amusements slot machines are owned by entities owned and

controlled by Zorzit. Thus, there would be no need to split the cash income with a

third-party location owner.

3D . Your affiant further noted that non-currency items deposited into the above-specifiedbank accounts often consisted of third party checks made payable to one companybut were deposited into a different business's bank account. Your affiant knows

through training and experience that maintaining and tracking the correct receipts ofa business is not typically done by depositing receipts from one company into thebusiness bank account of another company. In fact, your affiant believes comingling

deposits makes it needlessly complex and time-.consuming to calculate the accurate

gross receipts of the respective companies. Your affiant also knows through trainingand experience that coming ling funds between business bank accounts is typically

done so that the true gross receipts of a business cannot be correctly ascertained for

accounting, regulatory and tax purposes.

31.According to Bank of America, the signature cards for accounts held by Nick's

Amusements, Inc. (#0'0'44670'43897), Norino Properties, LLC (#0'0'3924663397 and

#0'0'3938368455), Norino Properties & Construction, Inc. (#0'0'3937235453) andBalsamo-Norino Properties, LLC (#0'393723470'0) each list ZORZIT as an authorized

party on the accounts.

32. For the years 20'0'3 through 20'0'6, the gross receipts of the businesses owned orcontrolled by ZORZIT were reported to the IRS as follows:

20'0'3 20'0'4 20'0'5 20'0'6

Gross Receipts $2,949,776 $3,0'81,512 $2,687,0'63 $3,475,944

Cost of Goods Sold ($30'6,994) ($213,290') ($168,018) ($186,558)

Other Income $340',0'0'0' $193,892 $464,166 $78,287

Total Income $2,982,782 $3,0'62,114 $2,983,211 $3,367,673

Total Deductions $3,618,878 $3,197,896 $3,111,341 $3,720',134

Net Income ($636,0'96) ($135,782) ($128,130') ($352,461 )

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~ 0 9- n 186 BPG

Real Property Purchases

33. Between the years 2003 and 2006, ZORZIT conducted a number of real estatepurchases through the entities mentioned above. The purchase of the following

properties can be traced to gambling business proceeds. As is set forth above, cash

deposits were made into the Nick's Amusements accounts and then were

transferred into accounts held in the names Norino Properties, LLC, NorinoProperties and Construction, Inc., Norino Management, Inc., Balsamo-Norino

Properties, LLC and Balsamo and Norino Properties, LLC, before the following

purchases.

34. On or about March 14, 2003, Norino Properties, LLC, purchased 2709 Washington

Boulevard, Baltimore, Maryland, for $100,000.

35. On or about April 3, 2004, ZORZIT signed a Deed of Trust on behalf of Norino

Properties, LLC, securing an equity line of credit for 18 Brett Manor Court, HuntValley, Maryland, for $1,050,000.

36. On or about August 5, 2003, Norino Properties, LLC, purchased 1122 West

Baltimore Street, Baltimore, Maryland, for $66,000.

37. On or about November 18, 2004, Norino Properties, LLC, purchased 29948 Garrett

Highway, Accident, Maryland, for $325,000.

38. On or about January 27, 2005, Balsamo And Norino Properties, LLC, purchased 43

Fire Tower Road, Friendsville, Maryland, for $97,000.

39. On or about May 31, 2005, Norino Properties, LLC, purchased 202 Teaberry Lane,Accident, Maryland, for $375,000.

40. On or about June 1,2005, Norino Properties, LLC, purchased 216 East Alder Street,Garrett, Maryland, for $180,000.

41. On or about September 27, 2005, Norino Properties, LLC, purchased 6900 BelairRoad, Baltimore, Maryland, for $200,000.

42.0n or about October 7,2005, Balsamo and Norino Properties, LLC, purchased 409Eastern Avenue, Essex, Maryland, for $245,0001.

43. On or about November 1, 2005, Norino Properties, LLC, purchased 1112 BeechDrive, Middle River, Maryland, for $62,000.

44. On or about February 9, 2006, Norino Properties, LLC, 424 South Payson Street,

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o 9- n 1 86 BP(3

Baltimore, Maryland, for $40,000.

45. On or about February 28, 2006, Norino Properties, LLC, purchased 8100 HarfordRoad, Baltimore, Maryland, for $780,000.

46. On or about March 15, 2006, Norino Properties, LLC, purchased 408 InglesideAvenue, Catonsville, Maryland, was purchased for $250,000.

47.0n or about May 27, 2006, ZORZIT and Joseph DiMartino purchased 194 LinzLane, Swanton, Maryland, for $80,000.

48. On or about June 13, 2007, Norino Properties, LLC, purchased 532 North MontfordAvenue, Baltimore, Maryland, for $74,000.

49. On or about July 25, 2007, Norino Properties, LLC, purchased 14 Stillwater Drive (lot17), Swanton, Maryland, for $590,000.

50. On or about June 30, 2003, ZORZIT signed a Deed of Trust on behalf of 10 WarrenRoad, LLC, securing an equity line of credit with 10 Warren Road, Cockeysville,

Maryland, for $1,575,000. According to MOAT records, the owner is 10 Warren

Road, LLC, c/o Norino Properties, Inc., 8100 Harford Road.

51. Based on training and experience, I know that courts have held that there is norequirement that a substantial portion of commingled funds be derived from the

criminal activity, so long as there is some evidence that some of the commingledfunds were from criminal activity. United States\J'. Ward, 197 F.3d 1076, 1083 (11th

Cir. 1999). The Fourth Circuit has also stated that when funds are drawn from a

commingled account, the government is entitled to a presumption that thetransaction involves criminally derived funds. United States V. Wilkinson, 137 F.3d

214,222 (4th Cir. 1998). Based on training and experience, I know that courts have

held that an entire bank account balance is forfeitable when only a portion of the

contents are criminal proceeds, if the account was involved in a transaction intended

to conceal the nature and source of the criminal proceeds. United States V.

McGauley, 279 F.3d 62, 77 (1st Cir. 2002); United States V. Tencer, 107 F.3d 1120,

1135 (5th Cir. 1997); United States V. Barnfield, 145 F.3d 1123, 1135 (10th Cir. 1998);

United States V. Puche, 350 F.3d 1137,1153-54 (11th Cir. 2003).

v. Conclusion

Based on the foregoing information, I submit that there is probable cause tobelieve that John ZORZIT and Nick's Amusements did knowingly and unlawfullyconduct an illegal gambling business in violation of 18 U.S.C. section 1955.

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f 0 9- n 1 8 6 RP~

I submit that there is also probable cause to believe that John ZORZIT and Nick's

Amusements did knowingly and unlawfully conduct, attempt to conduct, and cause

others to conduct financial transactions affecting interstate commerce that involved the

proceeds of a specified unlawful activity, that is an illegal gambling business, knowing

that the transactions were designed in whole or in part to conceal or disguise the nature,

the location, the source, the ownership, and the control of those proceeds, and knowing

that the property involv~d in the financial transactions was the proceeds of some form of

unlawful activity, in violation of 18 U.S.C. section 1956(a)(1)(B)(i) and 1957.

I submit that there is also probable cause to believe that the items described on

Attachment A constitute evidence, fruits, and instrumentalities of the above-described

offenses and are likely to be found in the following two locations:

a. 8100 Harford Road, Baltimore, Maryland 21234, known as the business

location of Nick's Amusements, Inc.

b. 18 Brett Manor Court, Cockeysville, Maryland 21030, known as the

residence of ZORZIT.

I submit that there is also probable cause 10 believe that the contents of the

following accounts include illegal gambling funds used in violation of 18 U.S.C. section

1955, which are su,bject to seizure and forfeiture pursuant to 18 U.S.C. section 1955(d),

and that the contents of the following accounts also have been involved in transactions

in violation of 18 U.S.C. section 1956(a)(1)(B)(i) and section 1957, and, therefore, the

contents of those accounts are subject to seizure and forfeiture pursuant to 18 U.S.C.

sections 981 (a)(1 )(A) and 984:

a. Bank of America business account number 0039-2723-2479 in the name

of Nick's Amusements, Inc., Florida.b. Bank of America business account number 0039-3307-6137 in the name

of Nick's Amusements, Inc., Music Account.

c. Bank of America business account number 0044-6704-3897 in the name

of Nick's Amusements, Inc., General Account.

d. Bank of America business account number 0039-3396-8753 in the name

of Nick's Amusements, Inc., Loan Account.



f. Bank of America business account number 0039-3836-8455 in the nameof Norino Properties, LLC.

g. Bank of America business account number 0039-2466-3397 in the nameof Norino Properties, LLC, Number 2.


of Norino Properties, LLC, T/A Stoneybrook Veranda Green, Unit 1524.


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of Norino Properties, LLC, TtA Clubside Circle.

J . Bank of America business account number 0039-3723-5453 in the name

of Norino Properties & Construction, Inc.

k. Bank of America business account number 0044-6704-3606 in the name

of Norino Management, Inc., General Account.


of Balsamo And Norino Properties, LLC.m. Bank of America business account number 0039-3723-4700 in the name


n. Bank of America business account number 0039-2466-2864 in the name

of Balsamo-Norino Properties, LLC, Number 2.

I submit that there is also probable cause to believe that the cash proceeds of the

illegal gambling business, which are forfeitable pursuant to 18 U.S.C. section 1955(d),

are traceable into the purchase of the following rE~alproperties, and that these real

properties are subject to forfeiture pursuant to 18 U.S.C. section 981 (a)(1 )(C); I submit

that the purchase of the real properties with the proceeds of specified unlawful activity is

a financial transaction in violation of 18 U.S.C. section 1956(a)(1 )(B)(i), and, therefore,

the real properties were involved in such transactions and are also subject to forfeiture

pursuant to 18 U.S.C. section 981(a)(1)(A):

a. 2709 Washington Boulevard, Baltimore, Maryland.

b. 18 Brett Manor Court, Hunt Valley, Maryland.

c. 1122 West Baltimore Street, Baltimore, Maryland.

d. 29948 Garrett Highway, Accident, Maryland.

e. 43 Fire Tower Road, Friendsville, Maryland.

f. 202 Teaberry Lane, Accident, Maryland.

g. 216 East Alder Street, Garrett, Maryland.

h. 6900 Belair Road, Baltimore, Maryland.

I. 409 Eastern Avenue, Essex, Maryland.

J . 1112 Beech Drive, Middle River, Maryland.

k. 424 South Payson Street, Baltimore, Maryland.

I. 8100 Harford Road, Baltimore, Maryland.

m. 408 Ingleside Avenue, Catonsville, Maryland.

n. 194 Linz Lane, Swanton, Maryland.

o. 532 North Montford Avenue, Baltimore, Maryland.

p. 14 Stillwater Drive (lot 17), Swanton, Maryland.

q. 10 Warren Road, Cockeysville, Maryland 21030.

The government intends to submit this affidavit in support of a civil forfeiture complaint

seeking the forfeiture of these real properties and the above-specified bank accounts.

Although I am seeking a seizure warrant for the bank accounts, I am not asking the

Court (1) to make any findings with respect to the real properties, or (2) to take any

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action with respect to them.

09- n 1 8 6 RP~

~~J-._-=--Special Agent

Internal Revenue Service

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Nick's Amusements Warrant

Documents

Transcript of Nick's Amusements Warrant