Blitzstein case figure Panaro gets 7 1/2-year sentence

Kim Smith

Thursday, Sept. 2, 1999 | 10:14 a.m.

Another of the co-defendants in the case of murdered underworld figure Herbie Blitzstein was sentenced Wednesday.

U.S. District Judge Philip Pro could have sentenced Robert Panaro to anywhere from 6 1/2 years to 8 years in prison on an extortion charge. He chose a 7 1/2-year sentence.

Federal authorities allege that Blitzstein was killed in January 1997 by a group of people who wanted to take over his loan-shark operation. Most of those arrested in connection with the plot ultimately pleaded guilty, but Panaro and Stephen Cino took their case to trial.

Although the pair were acquitted on any murder-related counts, jurors concluded they had plotted to force Blitzstein out of business and seize his assets.

Pro sentenced Cino to 15 years in prison Tuesday, refusing to take into consideration Cino's health problems and age.

Assistant U.S. Attorney Eric Johnson attempted to persuade Pro to go beyond the maximum sentence in Panaro's case. Johnson argued that had Panaro not had ties to the Buffalo La Costra Nostra crime family his co-defendants would not have carried out their plot.

Johnson also argued that Panaro had plotted with Cino to take over one of their co-defendants' auto repair businesses once "the heat" had died down over Blitzstein's death.

Panaro's attorney, John Fadgen, however, said there is absolutely no evidence Panaro has led a life of crime "be he or be he not" a member of the La Costra Nostra. Panaro had never been arrested before Blitzstein's death and he had been gainfully employed his entire 30 years in Las Vegas, Fadgen said.

Fadgen asked why Panaro didn't get any of the proceeds afforded the other members of the Blitzstein plot if he was a mob leader?

As for the extortion plot against the co-defendant, it never happened, Fadgen said.

Pro said the factors noted by Johnson were not enough for him to go beyond the maximum sentence recommended by the U.S. Department of Probation and Parole. However, he also said that Panaro clearly had "an integral part" in the extortion plot against Blitzstein.