THE PETE ROSE DECISION : Rose’s Biggest Problems Might Be on Horizon

Pete Rose, ruled permanently ineligible by baseball Commissioner Bart Giamatti for betting on his Cincinnati Reds, might now face more severe problems.

A federal grand jury in Cincinnati continues to investigate the possibility that Rose evaded income taxes during the mid-1980s.

An attorney who worked on baseball’s investigation of Rose and is familiar with the grand jury inquiry said Thursday:

“We’re talking very serious problems here. We’re talking about a lot of money--hundreds of thousands, perhaps, in unreported income from gambling and memorabilia sales and appearances.

“The question may be, do (the grand jury and federal investigators) have the backbone to bring (an indictment). They may have been waiting for baseball to make a move, being more comfortable kicking him when he’s down.

“I mean, Pete could end up doing time and being fined. It’s not good.”

Meanwhile, Rose’s name will also be heard frequently during the federal trial of a former housemate, Judge S. Arthur Speigel said Thursday as jury selection in the U.S. District trial of Thomas P. Gioiosa began in Cincinnati. Gioiosa lived with Rose for five years.

Gioiosa, 31, faces five counts of conspiracy to distribute cocaine, evading income taxes, falsifying income tax returns and conspiracy to defraud the government. If convicted on all counts, he would face up to 38 years in prison and a $2-million fine. It is not known if Rose will be called to testify.

“Pete Rose’s shadow is going to be involved in this case,” Speigel told the pool of 62 potential jurors. “I want to make sure all of you can decide this case on the evidence.”

Gioiosa was indicted in April on charges that he was part of a ring that smuggled cocaine from Florida to Cincinnati for distribution. He also was accused of failing to report income from that operation on his taxes, and also of falsely claiming winnings from Turfway Park, a northern Kentucky race track, to protect the actual winner.

Paul G. Janszen, who allegedly ran bets for Rose on baseball and other sports and whose testimony in the baseball investigation provided much of the evidence against Rose, reportedly told FBI and Internal Revenue Service investigators recently that Rose was the holder of a $47,646 winning pick six ticket at Turfway Park.