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AG objects to East Chicago settlement

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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.

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  1. Excellent initiative on the part of the AG. Thankfully someone takes action against predators taking advantage of people who have already been through the wringer. Well done!

  2. Conour will never turn these funds over to his defrauded clients. He tearfully told the court, and his daughters dutifully pledged in interviews, that his first priority is to repay every dime of the money he stole from his clients. Judge Young bought it, much to the chagrin of Conour’s victims. Why would Conour need the $2,262 anyway? Taxpayers are now supporting him, paying for his housing, utilities, food, healthcare, and clothing. If Conour puts the money anywhere but in the restitution fund, he’s proved, once again, what a con artist he continues to be and that he has never had any intention of repaying his clients. Judge Young will be proven wrong... again; Conour has no remorse and the Judge is one of the many conned.

  3. Pass Legislation to require guilty defendants to pay for the costs of lab work, etc as part of court costs...

  4. The fee increase would be livable except for the 11% increase in spending at the Disciplinary Commission. The Commission should be focused on true public harm rather than going on witch hunts against lawyers who dare to criticize judges.

  5. Marijuana is safer than alcohol. AT the time the 1937 Marijuana Tax Act was enacted all major pharmaceutical companies in the US sold marijuana products. 11 Presidents of the US have smoked marijuana. Smoking it does not increase the likelihood that you will get lung cancer. There are numerous reports of canabis oil killing many kinds of incurable cancer. (See Rick Simpson's Oil on the internet or facebook).

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