ILNews

East Chicago casino case still alive

Back to TopE-mailPrintBookmark and Share

A years-long court battle over millions of dollars in East Chicago casino revenue remains alive after a Marion County judge vacated an earlier dismissal of the civil suit and blocked the release of $8 million in disputed funds that had been part of a settlement.

Marion Superior Judge David Shaheed on Thursday issued the latest decision in City of East Chicago and State of Indiana v. East Chicago Second Century Inc., No. 49D01-0504-PL-014394. He agreed with Indiana Attorney General Greg Zoeller that approximately $8 million in casino-revenue funds should not be released while the litigation is ongoing. He decided July 15 to set aside his earlier ruling in April that had dismissed the suit, because the city and for-profit organization known as Second Century didn’t include the AG in settlement negotiations.

The case dates back more than a decade to the administration of now-convicted former Mayor Robert Pastrick, who set up the casino money and local development agreement with Second Century and similar organizations. But the AG’s office has tried for years to delve deeper into that financial transaction to determine how that money has been spent once received.

In February, Mayor George Pabey announced he had reached a deal with Second Century, a for-profit economic development organization that would redirect $1.5 million in annual casino revenue from Second Century to the city. In return, the city would release its claim to approximately $4 million in payments intended for Second Century that have been delayed since 2005 while the lawsuit was pending.

But Zoeller objected to the settlement because he claims Second Century has not adequately shown how it has spent some $16 million in casino revenue it has received over the years.

The settlement was approved April 8, but Judge Shaheed's latest ruling stops the settlement from proceeding and permits the attorney general to participate in the revived lawsuit.

"From the beginning of the Second Century case, the goal of the Indiana attorney general's office has been to ensure that funds intended to benefit the citizens of East Chicago actually do so," Zoeller said in a statement. "The public needs assurances that these funds are not squandered or diverted back to political cronies or to an administration under investigation for corruption."

Pabey was indicted by federal officials in February on charges he conspired to embezzle city money and unlawfully used city workers for personal projects. His trial is scheduled for September.
 

ADVERTISEMENT

Sponsored by
ADVERTISEMENT
Subscribe to Indiana Lawyer
  1. Call it unauthorized law if you must, a regulatory wrong, but it was fraud and theft well beyond that, a seeming crime! "In three specific cases, the hearing officer found that Westerfield did little to no work for her clients but only issued a partial refund or no refund at all." That is theft by deception, folks. "In its decision to suspend Westerfield, the Supreme Court noted that she already had a long disciplinary history dating back to 1996 and had previously been suspended in 2004 and indefinitely suspended in 2005. She was reinstated in 2009 after finally giving the commission a response to the grievance for which she was suspended in 2004." WOW -- was the Indiana Supreme Court complicit in her fraud? Talk about being on notice of a real bad actor .... "Further, the justices noted that during her testimony, Westerfield was “disingenuous and evasive” about her relationship with Tope and attempted to distance herself from him. They also wrote that other aggravating factors existed in Westerfield’s case, such as her lack of remorse." WOW, and yet she only got 18 months on the bench, and if she shows up and cries for them in a year and a half, and pays money to JLAP for group therapy ... back in to ride roughshod over hapless clients (or are they "marks") once again! Aint Hoosier lawyering a great money making adventure!!! Just live for the bucks, even if filthy lucre, and come out a-ok. ME on the other hand??? Lifetime banishment for blowing the whistle on unconstitutional governance. Yes, had I ripped off clients or had ANY disciplinary history for doing that I would have fared better, most likely, as that it would have revealed me motivated by Mammon and not Faith. Check it out if you doubt my reading of this, compare and contrast the above 18 months with my lifetime banishment from court, see appendix for Bar Examiners report which the ISC adopted without substantive review: https://www.scribd.com/doc/299040839/2016Petitionforcert-to-SCOTUS

  2. Wow, over a quarter million dollars? That is a a lot of commissary money! Over what time frame? Years I would guess. Anyone ever try to blow the whistle? Probably not, since most Hoosiers who take notice of such things realize that Hoosier whistleblowers are almost always pilloried. If someone did blow the whistle, they were likely fired. The persecution of whistleblowers is a sure sign of far too much government corruption. Details of my own personal experience at the top of Hoosier governance available upon request ... maybe a "fake news" media outlet will have the courage to tell the stories of Hoosier whistleblowers that the "real" Hoosier media (cough) will not deign to touch. (They are part of the problem.)

  3. So if I am reading it right, only if and when African American college students agree to receive checks labeling them as "Negroes" do they receive aid from the UNCF or the Quaker's Educational Fund? In other words, to borrow from the Indiana Appellate Court, "the [nonprofit] supposed to be [their] advocate, refers to [students] in a racially offensive manner. While there is no evidence that [the nonprofits] intended harm to [African American students], the harm was nonetheless inflicted. [Black students are] presented to [academia and future employers] in a racially offensive manner. For these reasons, [such] performance [is] deficient and also prejudice[ial]." Maybe even DEPLORABLE???

  4. I'm the poor soul who spent over 10 years in prison with many many other prisoners trying to kill me for being charged with a sex offense THAT I DID NOT COMMIT i was in jail for a battery charge for helping a friend leave a boyfriend who beat her I've been saying for over 28 years that i did not and would never hurt a child like that mine or anybody's child but NOBODY wants to believe that i might not be guilty of this horrible crime or think that when i say that ALL the paperwork concerning my conviction has strangely DISAPPEARED or even when the long beach judge re-sentenced me over 14 months on a already filed plea bargain out of another districts court then had it filed under a fake name so i could not find while trying to fight my conviction on appeal in a nut shell people are ALWAYS quick to believe the worst about some one well I DID NOT HURT ANY CHILD EVER IN MY LIFE AND HAVE SAID THIS FOR ALMOST 30 YEARS please if anybody can me get some kind of justice it would be greatly appreciated respectfully written wrongly accused Brian Valenti

  5. A high ranking Indiana supreme Court operative caught red handed leading a group using the uber offensive N word! She must denounce or be denounced! (Or not since she is an insider ... rules do not apply to them). Evidence here: http://m.indianacompanies.us/friends-educational-fund-for-negroes.364110.company.v2#top_info

ADVERTISEMENT