ILNews

AG objects to East Chicago settlement

Back to TopCommentsE-mailPrintBookmark and Share

The Indiana Attorney General has filed an objection to a City of East Chicago deal with Second Century, a for-profit company that has received casino money, that would settle a lawsuit between the parties.

Attorney General Greg Zoeller took the legal action Friday to prevent the settlement between East Chicago administration and Second Century Inc. from taking effect. Mayor George Pabey wants to settle the lawsuit - in which the AG is also a party - with Second Century that would require the for-profit company to account for $16 million in casino revenue it's received from the East Chicago riverboat casino since the company was created during former Mayor Robert Pastrick's administration. Nearly $8 million is currently in an escrow account. Second Century hasn't divulged how the money has been used.

The settlement would release the money in escrow, with 54 percent going to city administration and 46 percent to Second Century's owners. It wouldn't include accounting of casino revenue that has been spent so far nor any transparency in the future.

East Chicago City Council rejected the settlement last month, but the Pabey administration and Second Century jointly filed an agreed stipulation of dismissal with prejudice of the lawsuit April 6 in Marion Superior Court, purporting to dismiss the city's claims without the council's approval.

The court granted East Chicago and Second Century's stipulation of dismissal with prejudice. Zoeller objects to the settlement because as a plaintiff in the suit, the attorney general's office wasn't consulted about the settlement and does not agree with it. He claims the dismissal will allow the escrow funds to be distributed to Second Century, which would severely prejudice the claims that form the basis of the AG's action.

The court has yet to rule on the attorney general's motions.

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in Indiana Lawyer editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT
Subscribe to Indiana Lawyer
  1. Contact Lea Shelemey attorney in porter county Indiana. She just helped us win our case...she is awesome...

  2. We won!!!! It was a long expensive battle but we did it. I just wanted people to know it is possible. And if someone can point me I. The right direction to help change the way the courts look as grandparents as only grandparents. The courts assume the parent does what is in the best interest of the child...and the court is wrong. A lot of the time it is spite and vindictiveness that separates grandparents and grandchildren. It should not have been this long and hard and expensive...Something needs to change...

  3. Typo on # of Indiana counties

  4. The Supreme Court is very proud that they are Giving a billion dollar public company from Texas who owns Odyssey a statewide monopoly which consultants have said is not unnecessary but worse they have already cost Hoosiers well over $100 MILLION, costing tens of millions every year and Odyssey is still not connected statewide which is in violation of state law. The Supreme Court is using taxpayer money and Odyssey to compete against a Hoosier company who has the only system in Indiana that is connected statewide and still has 40 of the 82 counties despite the massive spending and unnecessary attacks

  5. Here's a recent resource regarding steps that should be taken for removal from the IN sex offender registry. I haven't found anything as comprehensive as of yet. Hopefully this is helpful - http://www.chjrlaw.com/removal-indiana-sex-offender-registry/

ADVERTISEMENT