Boulis Kin, 2 Felons Own Martha's Site

Friends of ours: Michael Giorango, Gambino Crime Family, John Gotti

The company that bought the Martha's Restaurant property includes a nephew of murdered SunCruz Casinos founder Gus Boulis and two felons -- one with reputed mob ties.

Spiros Naos, Boulis' nephew and part of SunCruz's current ownership, said Thursday he is unwinding his 14-month-old business relationship with the Chicago-area criminals because of "perception" issues. "Any reasonable business person would do the same thing," Naos said.

Naos' partners, Michael Giorango and Demitri Stavropoulos, were convicted in 2004 for separate crimes. Giorango, 53, a reputed organized-crime figure with the nickname "Jaws," is on probation after being found guilty by a Miami federal jury for promoting a prostitution ring. He also has a past conviction for illegal bookmaking. Stavropoulos, 38, is serving the final days of a nearly 18-month sentence after pleading guilty to operating an illegal gambling business and filing a false tax return. He also had to forfeit more than $1 million.

The trio bought the Martha's property in April 2005, even as prosecutors were building a case against other mob associates for the 2001 gangland-style killing of Boulis, founder of the floating-gambling empire.

Naos, 31, said he is "sensitive" about whom he does business with but insisted he didn't know the extent of Giorango and Stavropoulos' criminal background when they bought the Martha's property from Boulis' estate for $6.2 million. Naos said he originally was equal partners with Stavropoulos, whom he had met at a Greek wedding not long before the deal. Stavropoulos, in turn, split his stake with Giorango, Naos said.

Martha's wasn't their only business deal. Two months after the Martha's sale closed, the three partners and SunCruz Chairman Robert Weisberg paid $4.5 million for marina property near Myrtle Beach, S.C., where a SunCruz vessel docks.

Naos said Giorango and Stavropoulos were "transitioned out" of the South Carolina deal once Naos and Weisberg learned of the felons' backgrounds. Nothing in South Carolina property records could be found to reflect the change, which Naos described as a confidential financial matter.

Efforts to reach Giorango and Stavropoulos through their lawyers were unsuccessful. Giorango has another South Florida tie: State corporate records show he is manager of 2601 Associates LLC, owner of Miami Beach's Lorraine Hotel, one of the places where prosecutors alleged his prostitution ring operated.

While SunCruz's parent company signed a 10-year lease for the South Carolina marina property, Naos said SunCruz has no involvement with the Martha's property. In fact, the same month the property was sold, SunCruz pulled the plug on a gaming boat that docked behind the restaurant.

Both the Martha's and South Carolina marina property purchases were financed by the same Chicago financial institution, Broadway Bank.

The $4.8 million loan for Martha's, later increased by $1 million, and the $3.6 million loan on the marina property, among others, thrust Broadway Bank executive Alexi Giannoulias -- the Democratic nominee for Illinois state treasurer -- into the media spotlight earlier this year. Chicago-area newspapers wanted to know why the family-owned bank made loans to the felons.

While there was nothing improper about the loans, Broadway Bank would not make them again, said Giannoulias' campaign spokesman, Scott Burnham. Giannoulias ''is on the record saying that he didn't know the extent of the legal problems of these two individuals,'' Burnham said.

Giannoulias' campaign returned a $5,000 contribution from Naos, but not because of Naos' ties with Giorango and Stavropoulos, Burnham said. Rather, Burnham said it was SunCruz's connection with Jack Abramoff, who is embroiled in an influence-peddling investigation in Washington.

Abramoff, entrepreneur Adam Kidan and Ronald Reagan administration official Ben Waldman acquired SunCruz from Boulis for $147.5 million in September 2000.

Less than five months later, Boulis was murdered. Three men, a former advisor to Gambino family crime boss John Gotti and two mob wannabes, have been charged.

Thanks to Patrick Danner